Italian fashion is in turmoil. Not only because Milan Fashion Week begins in a few days, but because from a corporate point of view the most important houses that symbolize Made in Italy luxury could soon change their faces and objectives.
The wind of innovation that is blowing in the sector can have its most striking example in Ferragamo.
The hypotheses, repeatedly denied by the family, on the sale of the Florentine company continue to attract the interest of the market, with the stock which, for days on the Milan Stock Exchange, has continued to be among the absolute protagonists with dizzying ups and downs.
“The family is right not to sell”, commented Antoine Arnauld, son of the patron of Lvmh, Bernard. However, the entrepreneur did not comment on a possible interest of the transalpine group for Ferrragamo. “We are not here to talk about acquisitions, but for 'Les Journees Particulieres', our group's event”, he limited himself to saying.
But the rumors do not hold back the hypotheses about the future of the group, which has been engaged for months in a profound reorganization which culminated in the appointment of the new CEO Micaela le Divelec Lemmi.
Equita's analysts underline that “due to the fragmentation of the family at the head of the controlling holding (which holds 54% of the capital), Ferragamo is always one of the main candidates as a possible target for M&A in the sector and similar rumors are recurring. However, several times in recent months the president Ferruccio Ferragamo has confirmed the family's commitment and ruled out any sale hypothesis, as in this case".
It should be taken into consideration, underlines Equita, that the stock trades at 28 times the 2019 price/earnings ratio, at a premium of around 20% compared to sector valuations, already partly incorporating a speculative premium." In the event of an M&A, we could however hypothesize a further premium of 20%-30% based on past deals in the sector but also taking into account the current fears of a slowdown in Chinese luxury consumption".
But Ferragamo may not be the only fashion house to "change shape" in the near future. Another dossier not to be missed is the one concerning Versace. The company is now 80% controlled by Givi, a holding company owned by Santo and Donatella Versace and Allegra, daughter of the latter. The remaining share is held by Blackstone.
Also in this case the rumors speak of international giants intent on courting the Italian fashion house for several months. Among them there would be above all the French of Kering. So once again France, where former flagships of Made in Italy have already emigrated. Any examples? Gucci, Bottega Veneta and Pomellato passed under the control of Pinault, while Emilio Pucci, Fendi, Bulgari, Loro Piana and Cova were acquired, one after the other, by Lvmh, enriching the now indisputable French luxury.
To keep an eye on is also Trussardi, which according to what was reported by the Sole 24 Ore could soon reach an agreement with the Quattro R fund, a vehicle participated by Cassa Depositi e Prestiti.
