LVMH began a search for a new media agency this morning for the UK and France. Earlier this year it acquired a majority stake in the German sandal brand Birkenstock in a deal thought to be worth a cool £3.5 bn. Birkenstock said in a statement that the acquisition will help the footwear group expand its e-commerce and direct-to-consumer business as well as pursue growth in China and India.
Birkenstock also said that 2020 proved a “record year” despite the coronavirus pandemic during which “many companies in the sector suffered”. A spokesman for the group said that despite factory closures during lockdowns, revenues in the year to September 2020 were in line with the €721.5m Birkenstock made the previous year.
The Head of LVMH Bernard Arnault said that his investment would help the sandal maker “fully realise its significant growth potential”, adding: “Birkenstock was founded nearly 250 years ago and has grown to become one of the few iconic brands in the footwear industry. We truly appreciate brands with this long heritage.”