The end of the takeover era: LVMH prepares one of the biggest sales in history - FT
LVMH is turning from a buyer of luxury assets to a seller amid a prolonged cooling of the luxury market, the FT has learned / Photo: andersphoto / Shutterstock.com
French conglomerate LVMH is exploring the sale of a number of fashion houses, cosmetics Marks and alcohol brands, according to Financial Times sources. This could be one of the biggest business cuts in the company's nearly 40-year history: the luxury industry leader is optimizing its assets in response to a period of declining demand.
Details
According to the FT interlocutors, the list of assets put up for sale includes fashion brand Marc Jacobs, a stake in singer Rihanna's cosmetics brand Fenty Beauty and the American winery Joseph Phelps Vineyards. The rush to realize these mostly underperforming projects is part of a major cost management campaign at LVMH - the deals could bring in billions of euros for subsequent reinvestment, the publication notes.
Over the past year and a half, the holding company controlled by billionaire Bernard Arnault has already gotten rid of luxury streetwear brand Off-White, founded by the late designer Virgil Abloh, the Greater China business of travel retailer DFS and a 49 percent stake in fashion brand Stella McCartney. LVMH is now refocusing on its main profit drivers - such as Louis Vuitton and Dior, the FT points out.
LVMH shares were down 1.8% at the open of trading in Paris.
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