Is LVMH Eyeing Rodarte Again?
At their Fall 2010 show last February, attendees saw distressed bridal-looking gowns walk down an aisle covered with dripping candles. But even the gorgeousness and eccentricity of the Rodarte show couldn’t keep onlookers from noticing a certain CEO in the front row — Pierre-Yves Roussel, head of LVMH’s fashion division.
It isn’t the first time LVMH was front row at the Rodarte show. In fact, the company has been huge fans of the line for quite some time. WWD reports that the luxury group and Rodarte have held several discussions about an acquisition since spring, although market sources stress that no deal is in the works.
But why would LVMH — parent company to luxury fashion brands like Louis Vuitton, Marc Jacobs, and Fendi — want Rodarte, a brand that, according to WWD, has yearly earnings that fall just short of $2 million?
Despite the fact that Rodarte’s fashion forward and indie cred would make the brand an atypical acquisition, we think Rodarte would round out the conglomerate’s current offerings nicely. An influx of LVMH cash would allow Rodarte to expand their marketing and advertising budget, which would raise the brand’s mainstream profile considerably and increase profit. Look at how much press the Mulleavys and their clothing already get to begin with!
And LVMH is known for being home to what are arguably some of fashion’s greatest brands: Marc Jacobs and Louis Vuitton, Givenchy, Celine, Donna Karan — why not add to that with a critical darling like Rodarte and prove that LVMH doesn’t just acquire brands, they make them.