Billionaire Bernard Arnault is reportedly weighing a sale of his company’s stake in Rihanna’s Fenty empire, as LVMH considers offloading a slate of brands, including its 50% stake in Fenty Beauty, in what could signal a major strategic reset amid a cooling global luxury market.
According to the Daily Mail, LVMH has effectively placed fashion label Marc Jacobs, California-based Joseph Phelps Vineyards, and spirits brand Eminente under review.
Fenty Beauty, the cosmetics brand LVMH launched with Rihanna in 2017 has become a disruptive cultural and commercial force in the beauty industry, redefining inclusivity and reaching valuations of up to £1.5 billion in previous estimates.
Other potential divestments include long-held beauty labels such as Make Up For Ever and skincare line Fresh.
Luxury Slowdown Pressures
The possible sell-offs come as LVMH grapples with a broader slowdown across the luxury sector. After a surge in post-pandemic “revenge spending,” demand has softened significantly in major markets like the United States and China.
Recent disruptions, including geopolitical tensions in the Middle East, have also impacted consumer travel and spending in key luxury shopping hubs. In its latest quarterly update, LVMH reported that the conflict shaved approximately 1% off sales growth, with revenues slightly underperforming expectations.
Its core fashion and leather goods division, home to brands like Louis Vuitton and Dior—declined by 2%, underscoring the pressure on even the most resilient segments of the business.
Any sale of Fenty or other assets could generate billions in capital, adding to LVMH’s recent divestments, including stakes in Stella McCartney and Off-White.
At the same time, the group is reportedly exploring new opportunities, including a potential minority investment in Armani following the passing of its founder, Giorgio Armani.
The Arnault Playbook
Arnault, often dubbed “the wolf in cashmere”—built LVMH into a global powerhouse through aggressive acquisitions, including its $12 billion purchase of Tiffany & Co. in 2019. His current strategy appears to be shifting toward portfolio optimization, shedding underperforming or non-core assets while doubling down on high-growth opportunities.
Despite a personal fortune still exceeding $150 billion, Arnault has seen his net worth fluctuate alongside the luxury downturn, reflecting broader market uncertainty.
