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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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Cyprus Fuel Prices Jump 20.5% As Energy Costs Rise Across The EU

Cyprus recorded a 20.5% year-on-year increase in the prices of fuels and lubricants for personal transport in May 2026, according to Eurostat data released on Monday.

The increase was broadly in line with the European Union average of 20.7%, with fuel and lubricant prices rising across all EU member states during the period.

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Cyprus Tracks The EU Average

Among EU countries, the largest annual increases were recorded in Bulgaria (33.9%), Luxembourg (32.2%), Lithuania (30.8%) and Romania (30.4%). At the other end of the scale, Hungary registered the smallest increase at 3.5%, while annual growth ranged from 12.7% in Poland to 29.2% in France across the remaining member states.

Eurostat noted that fuel and lubricant prices generally declined across the EU until February 2026 before moving higher in subsequent months.

Diesel And Petrol Follow Different Paths

Across the European Union, diesel prices increased by 29% in May 2026 compared with the same month a year earlier, while petrol prices rose by 16.2%. Monthly trends, however, were more mixed. Between April and May 2026, diesel prices across the EU fell by 5.8%, whereas petrol prices increased by 0.8%.

In Cyprus, diesel prices declined by 1.5% over the same period. Although lower than in April, the decrease was less pronounced than in Germany (-11.9%), Greece (-8.5%), Estonia (-8.4%) and Ireland (-8.1%).

Petrol prices moved in the opposite direction, rising by 2.1% between April and May. A similar pattern was observed across much of the EU, with 23 member states reporting monthly increases. Italy recorded the largest monthly rise in petrol prices at 6.9%, while decreases were reported in Germany (-5.6%), Ireland (-2.0%) and Sweden (-0.7%).