|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||345.65 - 351.15|
|52-week range||278.70 - 439.05|
|Beta (5Y monthly)||0.87|
|PE ratio (TTM)||24.41|
|Earnings date||28 Jan 2020|
|Forward dividend & yield||6.80 (1.97%)|
|Ex-dividend date||21 Apr 2020|
|1y target est||319.92|
(Bloomberg) -- Though it’s just a four-minute drive across the lagoon from Mar-a-Lago, President Donald Trump’s private club, and ten minutes from the Palm Beach outposts of Chanel and Louis Vuitton, Howley’s diner has become an emblem of America’s stark new economic reality.With more than 10 million people across the nation suddenly unemployed, bread lines are forming in the shadows of privileged enclaves like this one in Florida.For the past two weeks, the kitchen staff at Howley’s has been cooking up free meals—the other day it was smoked barbecue chicken with rice and beans, and salad—for thousands of laid off workers from Palm Beach’s shuttered restaurants and resorts. The rows of brown-bag lunches and dinners are an early warning that the country’s income gap is about to be wrenched wider as a result of the Covid-19 crisis, and the deep recession it has brought with it.Even as much of America is fretting about supermarket shelves depleted of their favorite cereal brands and toilet paper or the logistics of curbside pickup from favorite restaurants, a brutal new hunger crisis is emerging among laid-off workers that has begun to overwhelm the infrastructure that normally takes care of the needy.“We’re seeing about a 650% increase in our request for support,” said Sari Vatske, executive vice president of Feeding South Florida, which before the pandemic was already serving more than 700,000 people a year in four counties including Palm Beach County. “The growth is exponential.”The surge in demand is not just in Palm Beach. Food banks around the world have recorded increases in requests for assistance as government-ordered lockdowns have started to bite, prompting employers to lay off staff.Food insecurity was already a chronic problem in many U.S. communities. Across the U.S. 14.3 million households were short of food in 2018, the last year for which government data are available. That equates to just over one in ten American households. For Black and Hispanic households the rate is closer to one in five.That is likely only to get worse with the number of people losing jobs at historic levels. In the final two weeks of March alone an unprecedented 10 million workers applied for unemployment insurance. And some economists predict about 20 million people will have lost their jobs by July. Those being thrown out of work are often people who were living paycheck-to-paycheck beforehand and are therefore among the most vulnerable.The $2 trillion rescue package Congress passed on March 27 includes $1,200 emergency payments for most Americans and extended unemployment benefits. But the speed in which the aid finds its way to the segments of the population that need it the most will have consequences for how long and deep the recession that’s already underway is.“It’s just really hitting people who are already the most vulnerable workers in our society so that is going to mean the pain will propagate faster,” said Heidi Shierholz, a former Labor Department chief economist now at the Economic Policy Institute. “They’re more likely to be living paycheck to paycheck than anyone else, and so if their income falls, they’re more likely to actually have to cut back on necessities like rent and food. So that just makes the recession deeper and longer by pulling even more economic activity out.”Rodney Mayo, whose 17-location Subculture restaurant group owns Howley’s, started handing out free meals in the diner’s parking lot on Saturday, March 21, after having to lay off 650 workers the day before.“They were asking ‘Where do we go? What do we do?’ All I really had was the unemployment site that was crashing and nobody could file anything on it,” Mayo said. “But I did promise them: No matter what, you and your families will get fed by us. And I said tomorrow we’ll be open at Howley’s.”What started with his own employees quickly grew into a bigger effort as friends, suppliers, and fellow restaurateurs pitched in, and area charities began sending other people needing meals his way.Two weeks on, Mayo has opened another of his restaurants to distribute meals and is preparing to open a third. He’s also turning a warehouse into a food pantry that will distribute groceries. He has secured funds from the local government and set up a charity called Hospitality Helping Hands that is taking donations to keep the effort going.The 15,000 meals he gave away in the first ten days cost an average of $1.30 each, Mayo said. The bonus has been being able to rehire some of his kitchen staff and to let the others who volunteer keep tips handed out by passersbys.Just a few days into April, Mayo already expects that he will be handing out meals into June. Even if and when the $1,200 payments the federal government has promised land and unemployment benefits kick in there will be a lingering need, he said.The current crisis, Mayo said, shone a spotlight on the divide between the pastel-clad privileged lives in the city of Palm Beach, an enclave on a barrier island connected to the mainland by a series of bridges, and the wider county around it. “There’s east of the bridge, which is Palm Beach, and then there’s everything west which is everything else,” Mayo said. “We have some very poor communities.”Even before the current crisis, three in five children in Palm Beach County’s public schools were eligible for federally-funded free or subsidized lunches, a measure of poverty. “When I tell people there’s hunger in Palm Beach County people think I’m kidding,” said Karen Erren, executive director of the Palm Beach County Food Bank. “But in south Florida our poverty level is always significant.”The threat of Covid-19 infections has caused food pantries in the area to change how they operate, or shut down. About a third of the 125 that the Palm Beach County Food Bank supplies are now closed, Erren said. Also a rush of panic buying has depleted stocks at supermarkets, particularly of shelf-stable foods, meaning donations from grocery chains are shrinking. Vatske said a sharp reduction in the supply from retailers to Feeding South Florida alongside the surge in demand had almost tripled its running costs. “It costs us about a $125,000 a week to operate under blue skies. Right now we’re looking at about $350,000 with having to purchase food. So we’ll need about $1.4 million a month to keep this going,” she said.Food banks and pantries are also planning for what they fear will be a longer term effect from the Covid-19 crisis. “What I’m thinking about right now is ‘Call me in a month’s time. Call me in two month’s time.’ Because that’s when reality will have hit,” said Ruth Mageria, executive director of Christians Reaching Out to Society Ministries, in Lake Worth, another town in Palm Beach County. Local food banks and pantries interviewed for this story said they have not had any contact with the Trump Organization or Mar-a-Lago, which was shut for cleaning last month after a cluster of Covid-19 cases was linked to a member of the entourage of visiting Brazilian president, Jair Bolsonaro and has not reopened.Neither the club’s general manager nor spokespeople for the Trump Organization responded to multiple requests for comment. Venues with a more upscale clientele than Howley’s are doing their part. At The Addison, a venue for weddings and other events in nearby Boca Raton, chefs have started working with a local charity and preparing 100 meals a day for delivery to elderly people stuck inside and other people affected. On the menu one day earlier this week: maple and mustard glazed Atlantic salmon with rice and broccoli.“We decided since we can’t host events we’d use resources to help our non-profit partner,” said Melanie De Vito, the business’ marketing director. It has helped fill one small gap, De Vito said, in a place where social distancing is far from the norm, “Boca is a very tight-knit community” in which “events are a big thing,’’ she said. “Having the socializing stop has been really surreal.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Amid all the economic despair in the age of coronavirus, there is still something about the promise of sky-high returns that the American investor finds irresistible.Cruise line operator Carnival Corp. proved that Wednesday when investors clamored to buy a new $4 billion bond sale that pays interest of 11.5%, one of the highest coupons ever offered, particularly by an investment-grade rated company. Demand was so frenzied -- as high as around $17 billion -- that Carnival was able to cut the coupon and increase the original size of the offering by an extra $1 billion, according to people familiar with the situation.Even with the economy spinning down, corporations around the globe have been able to tap the bond market to raise record amounts from investors in recent weeks. While executives are looking to stay liquid, investors’ confidence was buoyed by the trillions of dollars the Federal Reserve and other central banks are spending to buttress their economies.The demand for Carnival’s bonds was especially notable because investors have largely shunned riskier firms. Its business has been ravaged by the virus and investors still can’t be sure when the company will sail again. Appropriately enough, the majority of orders for Carnival’s offering are from junk-bond accounts.Yields that approach Carnival’s heights are usually seen only on the riskiest types of junk bonds, such as those issued from holding companies that are further removed from real assets or those that give borrowers the option to delay cash interest payments.A flurry of other bond deals Wednesday continued a strong performance for much of March, with 11 new investment-grade dollar deals, and T-Mobile US Inc. is marketing a potential $10 billion offering for its acquisition of Sprint Corp. Europe had 17 new deals, its busiest day since January, including Tiffany buyer LVMH and Absolut Vodka maker Pernod Ricard SA.Overall in March, U.S. investment-grade issuance topped $259 billion for a new monthly record, while European supply passed 135 billion euros ($148 billion), the most since 2016. Asia’s dollar market was quiet for most of the month, though Chinese internet search giant Baidu Inc. announced a deal to start April.Still, returns were dismal. Even with the Fed’s help fueling a late stage rally, March was still the worst month for returns since the end of 2008, with U.S. high-yield down 11.5% and investment grade dropping 7.1%. The European index lost 6.9% in March, its biggest loss ever. Spreads on top-rated Asian dollar bonds ended the first quarter 146 basis points wider, the worst blowout since 2009.“We expect issuance to continue as corporates look to bolster liquidity,” said Henrik Johnsson, co-head of capital markets at Deutsche Bank AG. “The long term effect of all this debt is hard to quantify.”U.S.Credit markets weakened with stocks on Wednesday as President Donald Trump told the U.S. to brace for one of its toughest stretches as a nation, with the death toll from the virus projected to potentially top 200,000. The high-grade borrowing bonanza showed no signs of abating with 11 companies launching $28.5 billion in new debt, meaning 36 issuers have already priced $78.8 billion this weekT-Mobile has hired banks to market its secured bond offering to investors, which may come Thursday in dollars and/or euros with maturities ranging from five to 40 yearsCarnival wrapped up its $4 billion bond sale after boosting the dollar component, dropping the euro tranche and getting a two-notch downgrade from Moody’s Investors Service on TuesdayAB InBev is testing investor demand with a four-part offering of maturities due between 10 and 40 years, capitalizing on interest lately in the long end. It sold 4.5 billion euros of bonds Monday, and may need to cut its dividend to preserve ratingsFor deal updates, click here for the New Issue MonitorOil producer Whiting Petroleum filed for bankruptcy, the first big casualty of a global collapse in crude prices that’s leaving debt-laden shale explorers struggling to surviveEuropeSeventeen deals priced Wednesday in the primary market’s busiest day for more than two months, totaling 26.8 billion euros. It follows the best-ever quarter for debt sales, with more than 510 billion euros priced, mainly reflecting huge volumes at the start of the year, and lots of reverse Yankee issuance.Borrowers including LVMH Moet Hennessy Louis Vuitton SE and Absolut Vodka maker Pernod Ricard SA are leading a calendar set to price 26.57 billion eurosInvestors have thrown almost 100 billion euros worth of cash at today’s deals, according to data compiled by Bloomberg, led by demand for offerings from Portugal, Total Capital International SA, a euro green note offered by Spain’s Iberdrola Finanzas SA, LVMH and Pernod RicardSpreads on euro IG company bonds remain elevated but have fallen about 8 basis points from multi-year highs reached on March 24, according to a Bloomberg Barclays indexSpanish bankers and lawyers are bracing for a steep surge in insolvencies, amid the country’s rising death toll and strict lockdown measures. Prime Minister Pedro Sanchez has announced 117 billion euros of fiscal stimulus, but some business leaders say aspects of the government’s response risk making things worseEuropean banks may get more time to meet loss-absorbing debt targets, the euro-area’s Single Resolution Board said. It’s ready to adapt transition periods and interim targets to help them deal with the coronavirus falloutAsiaThe rebound in global bond sales in recent weeks has so far eluded Asia. After record issuance in January, sales of dollar securities by the region’s issuers, including financials and sovereigns, sputtered in the first quarter, totaling about $86 billion, up only about 3% on the year-earlier periodOne reason for that is that unprecedented stimulus from the Federal Reserve and European Central Bank has had more direct benefits in the U.S. and European marketsAnother factor is that Asian companies have been able to tap local-currency markets. Chinese companies sold a record amount of domestic bonds in March, for example, after Beijing flooded markets with cashBut there have been signs in recent days that more borrowers may offer dollar debt. Chinese tech giant Baidu Inc. was marketing an offering WednesdaySpreads on top-rated Asian dollar bonds were 10-20 basis points wider Wednesday, according to traders. They ended the first quarter 146 basis points wider, the worst blow-out in a Bloomberg Barclays index going back to 2009For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Paris, April 1st, 2020The disclosure of share transactions carried out from March 23rd to March 27th, 2020 was sent to the AMF on April 1st, 2020. As required by current law, this document is publically available and can be consulted on the Company’s website (www.lvmh.com) under the section «regulated information».Attachment * Share Transactions Disclosure from March 23rd to March 27th 2020
Today we're going to take a look at the well-established LVMH Moët Hennessy - Louis Vuitton, Société Européenne...
Driving to work at his factory to the west of London last week, designer Steve Brooks had coronavirus on his mind. "Everyone has to use their little finger or find the bit of the door that nobody's touched," said the designer and owner at DDB Ltd, a company which makes office furniture. From furniture makers to AI software developers, companies around the world are adapting existing products or inventing new ones to help fight the pandemic or just make life easier for those working from home, in hospitals or stuck in quarantine.
Tesla, Louis Vuitton and other companies are re-directing their resources for COVID-19 relief measures.
LVMH , the world's biggest luxury goods group, is ordering 40 million health masks from a Chinese supplier to help France cope with the coronavirus outbreak. The first order, for a total of 10 million masks, will be delivered in coming days, LVMH said in a statement on Saturday. The rest of the order, on which LVMH cooperated with the French government, will be funded by the state and should be delivered in coming weeks.
(Bloomberg Opinion) -- A diamond is forever and so, perhaps, is Bernard Arnault’s interest in Tiffany & Co. Investors have been having some doubts that the chairman and founder of LVMH Moet Hennessy Louis Vuitton SA would deliver on his $16 billion takeover of the storied jeweler. But right now, Arnault is behaving like a classic luxury buyer.The bid for Tiffany is a long-term investment. Since the deal was agreed in November, the outbreak of the coronavirus has brought an abrupt end to luxury spending, first in China, and now in Europe and the U.S. Bernstein analyst Luca Solca estimates a decline of 20% in industry sales before currency movements this year, assuming a recovery in the second half, and a fall of 25-30% in the event of a global recession.Tiffany’s stock price is supported by the $135-a-share offer, but touched a year-to-date low of about $111 earlier this week. That large spread suggests an element of uncertainty the deal will actually close.Shareholders in the U.S. group approved the transaction in early February. Even with the collapse of luxury goods demand, financing shouldn’t be an issue. LVMH raised about $10 billion in a bond sale last month. Bernstein estimates net debt could be in the range of between 1.5 times and 2.5 times Ebitda at the end of this year, depending on how long the pandemic lasts. That’s hardly a stretched balance sheet.The question is whether there is any provision in the fine print of the deal agreement that LVMH lawyers could use to walk away — and whether Arnault would even want to if there was. Wriggling off the hook would damage Arnault’s reputation and send a terrible message to investors about the strength of LVMH.The company would also miss out on the long-term potential of Tiffany. Expanding in jewelry is a deeper strategic priority for LVMH. Trophy assets never come cheap, and if LVMH balked, it might struggle to get a second hearing especially if other suitors emerged. That all fits with what Arnault is doing — mulling the purchase of Tiffany shares in the market, below his offer price. This would be a pragmatic way to try to bring down the overall cost of the deal, without trying to renegotiate, or pressing the panic button.Of course, staying the course has some cost too. Tiffany needed some polish even before the luxury and the non-food retail industry shuttered stores in response to the Covid-19 outbreak. Elevating the brand just got even harder. And by sticking with Tiffany, LVMH is tying up financial resources that might otherwise be available to buy other assets. In reality, some of the smaller luxury houses have family shareholders who may be unwilling to sell out in a weak market.The Tiffany deal was never about buying the jeweler’s 2020 earnings. Just as well, for all sides.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- LVMH, the French luxury giant that agreed in November to acquire Tiffany & Co. for $135 a share, is considering buying the jeweler’s stock for less on the open market amid a coronavirus-driven slump, people familiar with the matter said.LVMH has discussed the idea with Tiffany’s board, which could grant permission for the potential purchases to go ahead after earnings, said the people, who asked not to be identified as the discussions are private. The French group hasn’t made a final decision on whether to proceed with selective market buying and is discussing possible legal hurdles to the idea, another person said.The unusual step, which could allow the Paris-based group to capture a near 13% discount at recent prices, is an example of how companies are addressing the market rout caused by economic fears around the coronavirus. The move would also underscore LVMH Chief Executive Officer Bernard Arnault’s commitment to the deal.“The actions LVMH takes are motivated by strategy and a long-term view,” Francesca Di Pasquantonio, an analyst at Deutsche Bank AG, said by phone. “It took them a long time to find the right moment for this deal.”Shares of Tiffany traded at around $118 apiece before Bloomberg News reported the plans. They rose to $126 at the close Thursday in New York, valuing the company at about $15 billion. LVMH shares were up 8.3% at 1:19 p.m. Friday in Paris.New York-based Tiffany said it would temporarily close all its stores in the U.S. and Canada, as well as “many other locations.” The company reported results early on Friday, saying net income fell 8% in 2019. Comparable sales, a key metric for retailers, rose 3% on a constant currency basis.A representative for LVMH declined to comment. Representatives for Tiffany didn’t immediately respond to requests for comment.Risk Arbitrage FundsDeal spreads, the difference in the price at which a company has agreed to sell its shares and the current value of that stock, reflect the market’s confidence that a transaction can overcome regulatory, financing or other, less predictable, hurdles to close. Most spreads on pending deals have widened dramatically in the past two weeks as nervous investors reassess even mergers that look likely to close.The spread on Tiffany increased from just 64 cents on Feb. 13 to about $17 at one point Thursday. That means a trader buying Tiffany stock stood to make that $17 on every share they purchase if LVMH completes the transaction. In buying the shares itself, LVMH effectively saves that same amount.While the sudden widening of apparently safe spreads reflects the general anxiety gripping the market, it also highlights the pressures facing so-called risk arbitrage hedge funds, which specialize in investing in mergers and acquisitions.In the past few years quantitative hedge funds willing to invest in already tight deal spreads, using high amounts of leverage to boost returns, have blossomed. The rapid reversal of confidence caused by the current crisis has left several facing margin calls and liquidations, according to people familiar with the matter, adding to the widening.Growing Market ShareA Bloomberg index of luxury goods companies has fallen nearly a third since the start of the year as the spreading coronavirus pandemic hampers demand for high-end products. Richemont, owner of Cartier and Van Cleef & Arpels, is trading near its lowest level since 2012.During previous downturns, LVMH has reinforced its edge on competitors by continuing to invest in increasing -- or at least preserving -- its share of the market for top-end goods. So even as markets tumble, the logic behind the world’s biggest luxury goods maker nabbing one of jewelry segment’s most recognizable brands remains intact.High barriers to entry would make it difficult for LVMH to gain market share in the “hard luxury” category -- which includes jewelry and watches -- without the Tiffany acquisition, Cowen Inc. analysts including Oliver Chen wrote in a report Thursday.“We do believe both companies are committed to the deal,” Chen wrote. “LVMH has likely looked at, considered, and wanted this asset for several years.”(Updates with analyst comment in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
According to the Bloomberg report, LVMH has discussed the plan with Tiffany's board, which could give the potential transaction a green signal after reporting quarterly results. Tiffany is due to report its results on Friday. LVMH is yet to make a decision on the transaction and is discussing potential legal hurdles to the idea, the report said.
Bernard Arnault has been the CEO of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) since 1989. First...
HONG KONG/MILAN/LONDON, March 6 (Reuters) - Chinese clothing conglomerate Shandong Ruyi has failed to secured financing for its $600 million acquisition of Swiss luxury brand Bally, more than two years after the deal was announced, according to four people with direct knowledge of the matter. The group, whose financing woes have been exacerbated by the outbreak of the coronavirus in China, agreed to buy a controlling stake in Bally from Luxembourg-based JAB Holding in February 2018, without disclosing financial details. Ruyi and JAB declined to comment, while Bally representatives did not immediately respond to requests for comment.
British designer Stella McCartney presented on Monday her snug and elegant looks for next winter with a playful twist, as animal mascots including a big white bunny joined models on the runway at the Paris fashion show. People dressed in fox, crocodile and cow costumes stole the show during the joyous finale, eliciting smiles from A-list guests including Vogue editor-in-chief Anna Wintour and actress Shailene Woodley. McCartney has long been known for her environmentally-friendly approach and was one of the first major designers to shun animal-related products - a cause many others have since taken up, though rarely in such a tongue-in-cheek manner.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can...