LVMH Moët Hennessy Louis Vuitton SE is selling the stake it owns in Stella McCartney back to the brand’s founder as the luxury group cleans up its portfolio of labels amid a downturn for high-end goods.

Stella McCartney is repurchasing the minority stake held by LVMH in the house she founded about five years after the luxury group bought it, LVMH and Stella McCartney said in a statement on Monday.

Stella McCartney is officially buying back the minority stake from LVMH in the brand’s latest business move. While LVMH divests in the brand, the designer is still slated to work with the group with a new title of global ambassador for sustainability.

Stella McCartney has bought back the minority stake in her namesake fashion business from LVMH. The designer, and daughter of British singer-songwriter Paul McCartney, is now in full control of the business after working with LVMH for five years.

LVMH has already sold the streetwear fashion brand Off-White recently, as well as its stake in Cruise Line Holdings amid dampened global demand for luxury goods and falling Chinese sales.

It is the latest stake sale by Louis Vuitton Moet Hennessy as it tackles a wider slowdown in the luxury sector.

LVMH Dumps Stella McCartney Stake--Is the Luxury Giant Bracing for More Cuts?

Stella McCartney is repurchasing the minority stake held by LVMH in the house she founded about five years after the luxury group bought it, LVMH and Stella McCartney said in a statement on Monday. The designer,

LVMH shares drop as profitability for 2024 decreases and company sells back stake in Stella McCartney's fashion label amid luxury demand slump.

The French luxury conglomerate had taken a 49 per cent stake in the London-based fashion label known for its sustainability credentials in 2019.