LVMH Sells Off-White Label to Brand Management Company — Update

By Pierre Bertrand and Andrea Figueras

LVMH sold luxury-streetwear brand Off-White to New York-based brand management company Bluestar Alliance for an undisclosed sum, three years after its first investment in the label founded by American designer Virgil Abloh.

The move marks a rare divestment for the French luxury giant, which has assembled a conglomerate spanning fashion, jewelry, cosmetics and hotels through deal making. On Friday, LVMH said it acquired an indirect stake in Moncler, after it reached an agreement with the holding company controlled by the Remo Ruffini, the chief executive of the Italian premium fashion brand.

The owner of Louis Vuitton, Dior and Tiffany's in July 2021 agreed to acquire a 60% stake in the company, with the brand's founder holding the remaining 40%. Abloh died in November 2021, having been men's artistic director of Louis Vuitton since 2018. LVMH took full ownership of Off-White in September 2022 by acquiring the remaining stake.

LVMH's investment in Off-White, founded in 2012, came at a time the luxury industry embraced prominent Black artists and designers. Abloh was one of the driving forces pushing hip hop and streetwear into luxury fashion.

However, analysts say interest in streetwear has cooled in recent years. VF earlier this year sold Supreme, popular among skateboarders as well as celebrities such as Justin Bieber and Rihanna, to Ray-Ban maker EssilorLuxottica for $1.5 billion.

The French conglomerate said Bluestar Alliance was the perfect partner to carry Abloh's legacy forward. Bluestar Alliance said the acquisition represented a unique opportunity and that it had an opportunity to make strategic investment to continue its creative momentum.

Write to Pierre Bertrand at pierre.bertrand@wsj.com and to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

October 01, 2024 02:56 ET (06:56 GMT)

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