LVMH Sells Stella McCartney Stake to Founder Amid Market Downturn and Strategic Portfolio Streamlining
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LVMH has sold its minority stake in Stella McCartney back to the founder, Stella McCartney, following a period of downturn in the company's performance. This move comes after more than five years of collaboration between the luxury conglomerate and the designer. The decision to sell the stake is attributed to several factors, including a decline in consumer confidence and an economic slowdown, particularly in the property market.Stella McCartney Ltd had reported sales of approximately £40 million ($50 million) in 2022, with an operating loss of around £8.8 million. Despite efforts to improve financial performance, the company has faced challenges in achieving profitability. However, there were signs of improvement, as the company narrowed its losses and reported a 23% uptick in revenue, aligning with its trajectory towards break-even.
