French luxury group PPR, the business behind brands including Gucci, Stella McCartney and Alexander McQueen, has ruled out any potential deal to acquire British luxury brand Burberry.
A spokeswoman for PPR told Drapers: “Burberry is a very beautiful brand, but it does not match the selection criteria for our luxury portfolio.”
Shares in Burberry have spiked this week following speculation of a deal.
This week, PPR, which had said previously that it intended to divest a number of its retail assets to focus on its Gucci Group brands and its Puma sportswear brand, said it had entered in to negotiations to sell its furniture chain Conforama, spurring on rumours of further deals by the group.
As well as Burberry, lifestyle retailer and brand Quiksilver is also cited by market insiders as a target for PPR.
The PPR spokeswoman declined to comment on the rumours of a deal concerning Quiksilver.
In November last year, PPR chief executive Francois Pinault said that he planned to sell the retail arms of the French group - which included mail order business Redcats, electricals retailer Fnac and Conforama - because “we have a major weakness - retail. It is a business that cannot develop quickly abroad.” He added that this was because it takes consumers a long time to accept an unfamiliar name.
He also said at the time that a 12-person team within PPR had drawn up a list of 12 luxury and lifestyle brands that PPR would be interested in acquiring. Analysts speculated then that the brands on PPR’s radar could include Tommy Hilfiger, Abercrombie & Fitch, Ralph Lauren, Levi Strauss & Co and Lacoste.
A spokeswoman for Burberry declined to comment. Quiksilver had not returned calls at the time of writing.