This is confirmed by the sources of the Financial Times. According to the publication, among the assets that may be put up for sale are the Marc Jacobs fashion brand, a stake in the Fenty Beauty cosmetics line, and the American wine business Joseph Phelps Vineyards. Potential deals could bring the company billions of euros, which are planned to be spent on the development of key business areas.
According to the FT, over the past year and a half LVMH has already reduced part of the portfolio: the brand Off-White, the business of duty-free network DFS in China, as well as a 49% stake in the brand Stella McCartney was sold. In addition, the company is considering the sale of certain assets in the Moët Hennessy division, including Eminente rum.
Such a strategy could mark a departure from the longstanding model of growth through acquisitions associated with the name of group head Bernard Arnault. LVMH has made more than 200 asset purchases since the early 2000s, including acquiring Tiffany & Co. for $16 billion in 2020 and Bulgari for 3.7 billion euros earlier.
Analysts say the current refocus on key brands such as Louis Vuitton and Dior comes amid an ongoing market slowdown from 2023, which the FT characterizes as a “winter of luxury.” After pandemic growth, demand has fallen due to pressure on consumer incomes and significant price increases.
LVMH itself declined to comment. Earlier, the group’s CFO Cecile Cabany said that the company primarily seeks to improve the performance of weak brands, but allows their sale if a more suitable owner appears.
The decline in demand is also affecting other companies in the sector. At the same time, some consumers are shifting their interest towards the secondary market – resale and vintage products, while competition from more affordable brands is intensifying in formal retail.
