2023-04-23 10:15:00 ET
When it comes to growth, fashion companies frequently choose to buy it off the rack. They expand by acquiring already-popular luxury brands and build a robust portfolio of different products that can include alcoholic beverage and skincare brands as well as clothing.
In recent history, a big catalyst for luxury goods sales has been the rise of social media . Content creators and influencers have contributed to a broader democratization of luxury goods. It is not uncommon to see pictures of non-celebrities on Instagram or Snapchat flaunting expensive clothing or vacationing in exotic locales.
This is one reason that stocks like Ulta Beauty , LVMH Moet Hennessy , and L'Oreal SA (OTC: LRLCY) have been performing handsomely for investors. All three have returned well over 100% over the last five years. And L'Oreal just made a new $2.5 billion acquisition -- its biggest deal ever. Let's see what that could mean for the company and its investors.
For further details see:
L'Oréal's Latest Acquisition Could Be a Game Changer