Shares of LVMH Moët Hennessy Louis Vuitton, or LVMH (FR:MC), fell over 1% as of writing after it agreed to sell Off-White LLC to the U.S.-based brand management company Bluestar Alliance. The companies did not reveal the financial details of the agreement. The transaction marks a rare divestment of a brand by LVMH. The company’s CEO, Bernard Arnault, is renowned for his skill in dealmaking, as demonstrated by the diverse range of 75 brands under its umbrella.
LVMH owns luxury brands such as Dior, Louis Vuitton, Sephora, Fendi, and Bulgari. Meanwhile, Bluestar Alliance manages a portfolio of brands, including bebe, Scotch & Soda, Hurley, Tahari, and others.
LVMH Sells Off-White to Bluestar Alliance
In 2021, LVMH increased its stake to 60% in Off-White, founded by the late designer Virgil Abloh. Later, LVMH took full control of the brand in 2022 to launch new brands and collaborations with Abloh. However, the recent sale came as a stark contrast to LVMH’s initial vision.
LVMH’s efforts to push Off-White into luxury fashion struggled to resonate with the brand’s core audience. As a result, key wholesale partners began discontinuing the label as the streetwear market declined.
Moving ahead, LVMH believes Bluestar is an ideal partner to continue the legacy of the Off-White brand.
LVMH Partners with Moncler’s Remo Ruffini
Recently, LVMH partnered with Remo Ruffini, CEO of the Italian fashion brand Moncler (IT:MONC). With this deal, Ruffini aims to reinforce his position as Moncler’s largest shareholder, while LVMH strengthens its influence on the global luxury market. LVMH, leveraging its financial strength, has been actively seeking acquisitions to broaden its luxury market portfolio.
Is LVMH Stock a Good Buy?
Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by a total of 16 recommendations from analysts. It includes 10 Buy and six Hold ratings. The LVMH share price target is €775.33, which is 13.07% higher than the current trading level.
