LVMH Moët Hennessy Louis Vuitton SE is selling its stake 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 late Monday. The terms of the deal weren’t disclosed.
LVMH shares fell as much as 1% in early trading in Paris on Tuesday. They are down 2.8% in the past 12 months through Monday’s close.
It’s the latest in a series of deals by LVMH, including selling the company that owns the Off-White label in September. The luxury group, which owns Louis Vuitton and Christian Dior, reports earnings on Tuesday. Analysts expect LVMH sales fell 1.04% in the fourth quarter amid poor demand in China in particular.
About a year ago, LVMH sold its stake in Cruise Line Holdings Co., the parent company of the Starboard & Onboard Cruise Services businesses, while LVMH’s DFS unit also closed a high-end department store in Venice in November.
Stella McCartney was founded by the daughter of The Beatles front man Paul McCartney. The designer’s creations are known for avoiding animal products like leather, fur and feathers, while offering eco-friendly designs including glue-free sneakers. The brand was previously part of Gucci owner Kering SA.
McCartney will continue to advise LVMH on sustainability issues, according to the joint statement.
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.