Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 68 , 05 January 2024
Open
Access | Article
Mergers and Acquisition in the Fashion Industry
* Author to whom correspondence should be addressed.
Abstract
On August 10th, 2023, Tapestry Inc., the parent company of renowned fashion brand Coach, announced a definitive agreement to acquire Capri Holdings Limited, which owns the iconic brands Michael Kors, Versace, and Jimmy Choo. This move signals the company’s aspirations to establish a powerful global portfolio of ironic luxury brands, one that would rival European conglomerates LVMH, Richemont, and Kering. Merger and Acquisition is a strategic tool utilized by organizations worldwide to adapt to the demands of today’s dynamic business environment. This strategy has gained significant attention and prominence in the fashion industry. Therefore, this study employs profitability metrics, liquidity metrics, and credit metrics to assess the post-merger financial performance of a select group of fashion companies, thereby gauging the effectiveness of the M&A tool. Results of this study show that there are no significant improvements in financial performance following the merger and acquisition.
Keywords
Fashion Industry, merger and acquisition, financial performance, profitability
References
1. Donzé, P.-Y., & Wubs, B. (2017). LVHM: Storytelling and organizing creativity in luxury and fashion. In R. Blaszczyk & V. Pouillard-Maliks (Eds.), European fashion: The creation of a global industry. Manchester University Press.
2. Donzé, P.-Y. (2017). Global Luxury: Organizational Change and Emerging Markets since the 1970s. Palgrave Macmillan Singapore. Chapter 2, 21-37.
3. de Morais, I. B. (2019). Mergers and Acquisitions in the Fashion Industry.
4. Meinshausen, S., & Schiereck, D. (2011). Dressed to merge – small fits fine: M&A success in the fashion and accessories industry. International Review of Financial Analysis, 20, 283-291
5. Olivier Bertrand, Marie-Ann Betschinger (2012), Performance of domestic and cross-border acquisitions: Empirical evidence from Russian acquirers. Journal of Comparative Economics, 40, 413-437.
6. Dean Amel, Colleen Barnes, Fabio Panetta, Carmelo Salleo (2004). Consolidation and efficiency in the financial sector: A review of the international evidence. Journal of Banking & Finance, 28, 2493–2519.
7. Paul M. Healy, Krishna G. Palepu, and Richard S. Ruback (1992). Does corporate performance improve after mergers? Journal of Financial Economics, 31, 135-175
8. Goold, M., Campbell, A. and Alexander, M. (1994), Corporate Level Strategy – Creating Value in the Multibusiness Company, Wiley, New York, NY.
9. Kapferer, JN, Tabatoni,O. (2012), The LVMH–Bulgari agreement: Changes in the luxury market that lead family companies to sell up, Journal of Brand Strategy, VOL. 1, NO. 4, 389–402
10. Elisa Giacosa (2012), Mergers and Acquisitions (M&As) in the Luxury Business. McGraw-Hill, ISBN: 9788838690716
11. Qamar Abbas1, Ahmed Imran Hunjra1,2, Rauf I Azam1, Muhammad Shahzad Ijaz1 and Maliha Zahid1(2014), Financial performance of banks in Pakistan after Merger and Acquisition, Journal of Global Entrepreneurship Research 2014, 4:13
12. Richemont annual reports(2023). https://www.richemont.cn/en/home/investors/results-reports-presentations/.
13. Richemont annual reports and Morningstar website(The fiscal year ended on 31 March)(2023). https://www.richemont.cn/en/home/investors/results-reports-presentations/.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-267-1
- ISBN (Online)
- 978-1-83558-268-8
- Published Date
- 05 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/68/20241375
- Copyright
- 05 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited