Stella McCartney has jumped-ship to LVMH
High-end eponymous fashion brand Stella McCartney has announced that it has joined the world’s largest luxury company, LVMH. This will come as a surprise to many. Almost a year and a half ago, then-owner Kering sold back its 50% stake in Stella McCartney to Ms. McCartney herself – at the time, reports said that the brand had no major business plans, such as an Initial Public Offering or new business partner. In the time intermittent, however, that seems to have changed.
LVMH’s share price has rallied by 52% so far this year
Source: Yahoo Finance
In an announcement on Monday, McCartney said she would be working with LVMH, noting that sustainability credentials and a love for the Stella McCartney brand were at the core of her decision: “Since the announcement of my decision to take full ownership of the Stella McCartney brand in March 2018 there have been many approaches from various parties expressing their wish to partner and invest in the Stella McCartney House. While these approaches were interesting none could match the conversation I had with Bernard Arnault and his son Antoine. The passion and commitment they expressed towards the Stella McCartney brand alongside their belief in the ambitions and our values as the global leader in sustainable luxury fashion was truly impressive.”
LVMH’s chairman and CEO, Bernard Arnault, added: “I am extremely happy with this partnership with Stella. It is the beginning of a beautiful story together, and we are convinced of the great long-term potential of her House. A decisive factor was that she was the first to put sustainability and ethical issues on the front stage, very early on, and built her House around these issues. It emphasizes LVMH Groups’ commitment to sustainability. LVMH was the first large company in France to create a sustainability department, more than 25 years ago, and Stella will help us further increase awareness on these important topics.”
Dominion holds LVMH in its Global Trends Luxury Fund.
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