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LVMH Divests Stella McCartney Stake Back To Founder Amid Luxury Market Challenges

by THEFUTURE.TEAM

January 28, 2025

LVMH Moët Hennessy Louis Vuitton SE has announced it is selling its minority stake in Stella McCartney back to the brand’s founder as the luxury conglomerate reevaluates its portfolio during a challenging period for high-end goods.

The agreement brings an end to a five-year partnership between Stella McCartney and LVMH, according to a joint statement released on Monday. The financial terms of the deal remain undisclosed.

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This move follows a series of strategic adjustments by LVMH, including the sale of its stake in Off-White’s parent company last September. In addition, the group divested from Cruise Line Holdings Co. and closed a high-end department store in Venice operated by its DFS unit in November. Analysts predict that LVMH’s fourth-quarter sales, due to be reported on Tuesday, fell 1.04%, largely due to weakening demand in key markets like China.

Stella McCartney: The Brand And Its Vision

Stella McCartney, daughter of Beatles legend Paul McCartney, established her namesake brand with a commitment to sustainability and ethical fashion. The brand is renowned for eschewing animal-derived materials such as leather, fur, and feathers, instead focusing on eco-conscious innovation, including glue-free sneakers.

Previously part of Kering SA, Stella McCartney joined forces with LVMH in 2019, with the designer assuming a dual role as brand leader and sustainability advisor to the luxury group. McCartney will continue in her advisory capacity for LVMH on sustainability matters despite this ownership transition.

Financial Challenges And Brand Outlook

Stella McCartney Ltd reported sales of approximately £40 million ($50 million) in 2022 but posted an operating loss of around £8.8 million, according to records filed with the UK’s Companies House in December 2023.

The move to regain full control of her brand signals McCartney’s commitment to her vision and the brand’s long-term sustainability ethos, even as the broader luxury market faces headwinds.

Market Response And Industry Context

LVMH’s stock fell 1% in early trading on Tuesday in Paris, extending its 12-month decline to 2.8%. The luxury sector has been under pressure due to shifting consumer demand, particularly in China, one of the industry’s largest markets.

This divestment highlights LVMH’s continued focus on refining its portfolio amid market volatility, while allowing Stella McCartney to further embrace its independent and sustainable brand identity.

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FinTech’s Dominance In MENA: Three Strategic Drivers Behind Unyielding VC Success

by THEFUTURE.TEAM

September 11, 2025

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

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Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.