LVMH Sells Stella McCartney Stake Back to Founder After Downturn
(Bloomberg) — LVMH Moët Hennessy Louis Vuitton SE is selling the stake it owns in Stella McCartney back to the brand’s founder as the luxury group cleans up its portfolio of labels amid a downturn for high-end goods.
Stella McCartney, 53, will repurchase the minority stake from LVMH after a collaboration of more than five years, the parties said in a joint statement Monday. The terms of the deal weren’t disclosed. Stella McCartney will continue to advise LVMH on sustainability matters.
The designer’s creations are known for avoiding animal products like leather, fur and feathers, while offering eco-friendly designs like glue-free sneakers.
The luxury group which owns Louis Vuitton and Christian Dior will report earnings on Tuesday. Analysts expect LVMH sales fell 1.04% during the fourth quarter amid poor demand in China in particular.
Stella McCartney was founded by the daughter of the Beatles front man Paul McCartney. The brand was previously part of Gucci owner Kering SA.
The move comes after LVMH sold the company that owned the Off-White label in September. About a year ago, it sold its stake in Cruise Line Holdings Co., the parent company of the Starboard & Onboard Cruise Services businesses. LVMH’s DFS unit also closed a high-end department store in Venice in November.
Stella McCartney Ltd had sales of about £40 million ($50 million) in 2022 with an operating loss of around £8.8 million, according to the latest available accounts published in December 2023 on UK registry Companies House.
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