LVMH has already sold the streetwear fashion brand Off-White recently, as well as its stake in Cruise Line Holdings amid dampened global demand for luxury goods and falling Chinese sales.
Luxury giant LVMH Moët Hennessy Louis Vuitton SE says it is selling its stake in Stella McCartney back to the brand’s founder, as it attempts to offload some of its labels while the luxury goods market continues to show signs of struggling.
Currently, the luxury company owns a minority stake of 49% in the brand, which it has held since 2019. Additional details about the terms of the sale have not been revealed.
LVMH’s share price slipped 0.66% on Tuesday morning; shares have fallen 2.83% in the last year.
The company owns a variety of high-end brands including Givenchy, Celine, Fendi, Christian Dior and Sephora, as well as champagne brands such as Dom Pérignon and Krug.
Stella McCartney sells accessories, clothing and skincare products, with partnerships with brands such as Adidas and Bolt Threads. Kering SA previously owned the brand, which is also renowned for excluding animal products from its offerings and prioritising eco-friendly designs.
Stella McCartney says she will continue to advise LVMH on sustainability issues.
LVMH recently sold the streetwear fashion brand Off-White to New York-based brand management company Bluestar Alliance, along with its stake in Cruise Line Holdings Co.
LVMH’s rating hiked to overweight by Morgan Stanley
Investment bank Morgan Stanley has recently upped LVMH’s rating to ‘overweight’, from ‘equal weight’.
The bank said in a research note, as reported by Reuters: “While LVMH should face a number of challenges in 2025, the Group’s prospects have materially improved in recent weeks, a function of more favourable industry dynamics but also company specific factors (improving prospects at key brands Vuitton/Tiffany/Bulgari).”
However, LVMH continues to face risks such as falling demand in key markets like China. This is mainly because of the country’s lagging consumer confidence, as well as economic slowdown, mainly driven by the decrease in its property sector.
The ongoing cost of living crisis seen in several parts of the world, along with continuing high inflation and interest rates, have further exacerbated this issue, leaving consumers wary of spending on pricey luxury goods.
LVMH will announce its full year 2024 results on Tuesday, after the close of the Paris market.