Stella McCartney Buys Company Back From LVMH

 

The luxury fashion world, already buzzing with hopes it can overcome a long and lingering slump, found something new to discuss: Designer Stella McCartney is buying back the minority stake now held by LVMH.

McCartney, the vegan designer best known for translating fierce environmentalist concepts into fiercer fashion, first partnered with LVMH in 2019.

In a joint statement widely covered in the fashion press, the two said simply that McCartney is taking back the stake "after more than five years of fruitful collaboration with LVMH."

The decision “reflects her desire to write a new page in her story independently, after working closely with the group to strengthen the fundamentals and governance of her house," reports Women’s Wear Daily.

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McCartney, daughter of Beatle Paul McCartney, will continue as global ambassador on sustainability to LVMH.

Vogue Business notes that under LVMH, Stella McCartney hired Amandine Ohayon as the brand’s new CEO in December 2023, streamlined its retail network and collaborated with Veuve Clicquot.

The announcement comes as luxury brands seem to be battling their way to something of a comeback. Investors are looking for good news from LVMH, which is scheduled to announce earnings later this week.

Reuters notes that Morgan Stanley just raised its ratings on LVMH. "While LVMH should face a number of challenges in 2025, the Group's prospects have materially improved in recent weeks, a function of more favorable industry dynamics but also company-specific factors,” the report said. That includes improving prospects at such key brands as Louis Vuitton, Tiffany and Bulgari.

Also fueling optimism is that Richemont, owner of Cartier, recently recorded a surge in third-quarter sales.

And Burberry, in the early days of a transformation effort, reported that sales fell 4% in the holiday period, a smaller drop than predicted.

Reuters says Joshua Schulman, just six months into his role as Burberry’s CEO, attributed the relative strength to the company’s festive advertising campaigns, starring trademark trench coats and scarves.

"We are extremely pleased with the results," Schulman told journalists on a call, Reuters says. "We have seen new customer growth in the month of December for the first time in over two years, and we've seen an increase in the brand desirability as well."

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