After investing in sneaker consignment site Stadium Goods last year, LVMH is taking a minority stake in Gabriela Hearst. According to a statement from the Paris-based luxury goods conglomerate, its LVMH Luxury Ventures is investing in Hearst’s 4-year old New York-based womenswear brand, a deal for which the terms have not been revealed but which will likely see the startup fund pour between 2 million euros ($2.3 million) and 10 million euros ($11.48 million) into the brand.
LVMH — the parent of Louis Vuitton, Christian Dior, Givenchy, Celine, and Marc Jacobs, amongst 70 or so other fashion and non-fashion brands — launched its Luxury Ventures in early 2017 for the purpose of investing in emerging-stage fashion, cosmetics or accessories companies. Starting with capital of 50 million euros ($57.4 million), “The aim is to accompany financially the development of these small nuggets to create value,” an LVMH spokesman said in 2017.
Thus far, this has seen the subsidy of the luxury goods powerhouse enter into a “partnership” (financial details of the transaction were not disclosed) with buzzy New York-based consignment sneaker store Stadium Goods to enable the New York-based business “to fund future expansion.” (Stadium Goods was subsequently acquired by FarFetch for $250 million).
Since launching her brand in 2015, Hearst has largely made her name thanks to her upscale “it” bags favored by everyone from Meghan Markle and Oprah to Amal Clooney and Lady Gaga, and for her thoughtfully-designed ready-to-wear, which places an emphasis on sustainable manufacturing and luxury textiles, or “luxury goods with a conscience,” as Hearst puts it.
The newly-announced partnership with LVMH Luxury Ventures will enable Hearst to accelerate growth for her eponymous label, including on an international scale.
Share
