French luxury group LVMH is acquiring a 60% stake in Off-White, the label of designer Virgil Abloh who has been responsible for Louis Vuitton's men's collections since 2018.
Growing importance of streetwear
LVMH reports that it has taken a majority stake in Off-White, the brand launched in Milan in 2013 by American designer Virgil Abloh. This will give the world's largest luxury goods company a firm foothold in streetwear, a highly profitable segment that has risen to prominence within haute couture in recent years.
LVMH will own 60% of the brand while the founder will retain a 40% stake. Further details of the transaction were not disclosed, writes Les Echos.
Until now, Off-White was controlled by New Guards, an Italian group that also owns Palm Angels and Heron Preston. New Guards was bought by Farfetch in August 2019 for around 600 million euros. As a licensee, Farfetch will continue to operate the brand.
Within its segment, Off-White is a major player. The label already has 56 stores worldwide and counts more than 10 million followers on Instagram. In February, Andrea Grilli, the big boss of New Guards, announced that he is aiming for sales of one billion dollars within five to ten years.
The deal highlights the ever-closer partnership between Abloh and the French luxury house. The story began in 2007, when the designer of Ghanaian-American descent, who at the time was still artistic director for Kanye West, collaborated on the creation of a Fendi collection. In 2015, Abloh was then a finalist for the LVMH Young Designer Award. Three years ago, he was appointed head of Louis Vuitton's men's collections.