LVMH Moët Hennessy Louis Vuitton SE is divesting its stake in the eponymous brand Stella McCartney, returning ownership to the brand's founder. This move comes as the luxury conglomerate streamlines its portfolio amidst a slowdown in the high-end market.
British fashion designer Stella McCartney will repurchase the minority stake from LVMH, concluding a five-year partnership. She will continue to advise LVMH on sustainability initiatives, a key area of focus for her brand, known for its commitment to animal-free and eco-conscious designs.
The sale precedes LVMH's upcoming earnings report where analysts anticipate a 1.04 per cent decline Q4, FY25 sales, primarily due to weakened demand in China. The divestment also follows other recent moves by LVMH, including the sale of the company owning the Off-White label in September and its stake in Cruise Line Holdings Co last year. LVMH's DFS division also shuttered a luxury department store in Venice in November.
As per the brand’s latest financial reports, previously operated Gucci’s parent company, Kering, Stella McCartney reported sales a decline in its sales to approximately £40 million in 2023 from $50 million in 2022 besides an operating loss of around £8.8 million.
