The Biggest Mergers, Acquisitions and Corporate Shake-Ups of 2025
2025 proved to be a pivotal year for the luxury sector, marked by bold acquisitions, strategic alliances and a wave of leadership changes. As heritage brands and global conglomerates seek to scale faster and secure long-term competitiveness, success increasingly hinges on their ability to create demand, streamline operations and leverage efficiency across supply chains and digital infrastructure. From the consolidation of iconic Italian houses to the rise of younger, globally minded creative directors, the moves of this year signal a recalibration of power in luxury and a renewed focus on heritage, innovation, and market relevance.
Kering and L’Oréal Forge an Alliance in Beauty and Wellness
In October 2025, Kering and L’Oréal announced a landmark partnership in the beauty and wellness sector, with L’Oréal agreeing to acquire Kering’s luxury beauty operations — including the renowned fragrance house Creed — in a EUR 4 billion strategic deal. Under the terms, L’Oréal also secures 50-year exclusive licences to develop, produce and distribute fragrance and beauty products for Kering’s flagship fashion houses such as Gucci, Balenciaga and Bottega Veneta, beginning once existing agreements (such as Gucci’s current contract with Coty) expire. The alliance is designed to leverage L’Oréal’s global reach and operational expertise in beauty while providing Kering with capital to refocus its portfolio and improve its balance sheet amid slowing fashion demand.
This strategic move by Kering, arriving early in the tenure of new CEO Luca de Meo, marks a shift away from the group’s recent diversification efforts in beauty — including a substantial investment in Creed only two years prior — toward a model that prioritises core fashion and luxury leather goods. The long-term licences and joint initiatives in wellness also suggest the industry’s increasing merger of beauty, lifestyle and wellbeing as interconnected segments of luxury consumer demand
LVMH Accelerates Watchmaking Integration Through Micro-Manufacturing
LVMH’s Watches & Jewellery division took significant steps in 2025 to bolster its industrial capabilities by acquiring a minority stake in Swiss movement maker La Joux-Perret. This move deepens LVMH’s foothold in watch component manufacturing, enhancing its ability to innovate and meet internal demand for technical movements across brands like TAG Heuer, Hublot and Zenith, while reducing reliance on outside suppliers. The partnership builds on prior collaboration — for example, on solar quartz movements for TAG Heuer — and reflects a broader industry push toward greater vertical integration and supply-chain resilience in the face of global production pressures.
By bringing movement innovation in-house, LVMH reduces reliance on external suppliers while significantly shortening development and production cycles — a critical advantage in a segment where technical differentiation and time-to-market increasingly shape competitiveness. This vertical integration allows the group to scale production more efficiently, respond faster to market demand and support higher volumes without compromising technical credibility.
The restructuring also coincided with leadership recalibration within LVMH’s watch division, reinforcing a sharper industrial focus alongside brand-led storytelling. Rather than pursuing expansion through volume alone, the group is prioritising precision manufacturing, modular movement platforms and long-term capacity building. In doing so, LVMH signals a broader industry shift where control of supply chains and technical know-how is foundational to growth in luxury watchmaking.
Richemont Centralises Digital Retail Under YNAP 2.0
Richemont completed the sale of Yoox Net‑A‑Porter (YNAP) to luxury e‑commerce platform Mytheresa in April 2025. The transaction saw Richemont receive EUR 555 million in cash and no financial debt, in exchange for a 33 percent equity stake in the newly consolidated entity — now renamed LuxExperience B.V., which combines Mytheresa, Net‑A‑Porter, Mr Porter, Yoox and The Outnet under one luxury‑focused digital group.
2025 also saw Richemont undertake a significant leadership reshuffle, appointing a new Chief Digital Officer to oversee its unified e-commerce strategy. The move brings Cartier, Van Cleef & Arpels and YNAP under a single digital architecture, enabling the group to centralise distribution points, expand online channels beyond traditional brick-and-mortar stores, and leverage first-party data to drive personalised, high-touch sales experiences. This consolidation positions Richemont to scale its online retail faster while maintaining the luxury service standards expected by its clientele.
Prada Acquires Versace for EUR 1.25 Billion, Reinforcing “Made in Italy” Luxury
In March 2025, Donatella Versace stepped down after nearly 30 years as creative director. She was replaced by Dario Vitale (ex-Miu Miu) in April, marking the first time the brand was led creatively by a non-Versace family member. Less than nine months later — shortly after the brand’s acquisition by Prada — Vitale stepped down, leaving the creative reins in limbo.
Following Prada’s EUR 1.25 billion acquisition of Versace in December 2025, the Italian luxury landscape saw a major consolidation of heritage brands. The deal officially closed on 2 December, uniting two of Italy’s most iconic fashion houses under Prada’s stewardship. Donatella Versace had stepped down earlier in March, handing the reins to Dario Vitale, who oversaw the brand from April until his departure on 12 December, shortly after the acquisition. This leadership transition marked the end of an era and opened the door for Prada to reinforce Versace’s “Made in Italy” identity, while integrating its bold, baroque aesthetic with Prada’s disciplined, modernist approach. The acquisition not only strengthens Prada’s foothold in global luxury but also signals a strategic commitment to scaling Italian craftsmanship and heritage brands at a time when international markets are increasingly competitive.
Farfetch Restructures After Coupang Acquisition
After South Korean e‑commerce giant Coupang completed its acquisition of Farfetch’s business and assets — backed by a $500 million capital infusion — the luxury marketplace entered a period of significant restructuring aimed at returning the business to profitability. Under new ownership, Farfetch narrowed its focus on its core marketplace model and disciplined cost structure, cutting overhead, streamlining operations and exiting unprofitable ventures such as its white‑label commerce solutions and non‑core software services. This shift helped Farfetch narrow losses and position the platform for steadier growth, with executives noting disciplined investment and operational focus as key to its turnaround. Coupang’s logistics expertise is also being leveraged to support international expansion, including enhancing fulfilment and delivery capabilities in key Asian markets such as Korea, where local integration with Coupang’s infrastructure aims to broaden reach and customer convenience. These moves illustrate a pivot away from rapid, unfocused expansion toward a leaner model that cuts losses, strengthens fundamentals and lays groundwork for a more sustainable scale.
Creative Director Reshuffles Across Heritage Houses
2025 has witnessed a notable wave of creative director changes across major and heritage luxury houses, reflecting a broader strategic recalibration in response to evolving market dynamics. Jonathan Anderson exited Loewe after 11 years, with Jack McCollough and Lazaro Hernandez (formerly of Proenza Schouler) stepping in to modernise the brand’s collections. Mugler appointed Miguel Castro Freitas to succeed Casey Cadwallader, while Gucci brought in Demna to lead as artistic director following Sabato De Sarno’s departure. Other shifts included Kim Jones leaving Dior, Glenn Martens taking over Maison Margiela from John Galliano, and Dario Vitale briefly assuming Versace’s chief creative officer role before stepping down after Prada’s acquisition. These leadership moves underscore a trend toward younger, globally minded creatives tasked with revitalising heritage brands, expanding their business reach, and creating demand among newer, younger consumers while retaining the essence of their storied legacies.
Giorgio Armani Passes, Setting a New Course for the House of Armani
In September 2025, fashion titan Giorgio Armani died aged 91, marking the end of an era for one of Italy’s most revered independent luxury houses. Armani had personally guided the brand since founding it in 1975, building a globally recognisable empire renowned for understated elegance and meticulous craftsmanship. Following his death on 4 September 2025, the Armani Group moved forward with a carefully planned succession: longtime executive Giuseppe Marsocci was appointed CEO, bringing continuity to operations while a new eight‑member board of directors was established to steward the company’s future. Armani’s will, made public in September, instructs his heirs and the Armani Foundation to sell an initial 15 percent stake within 12–18 months — with priority given to luxury players such as LVMH, L’Oréal or EssilorLuxottica — and permits the buyer to acquire up to 54.9 percent over the following years, or for the company to pursue a public listing if no suitable deal materialises. This direction marks a significant shift for a brand known for its independence, signalling potential new partnerships or capital strategies while honouring Armani’s legacy.
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