The insight: LVMH is recalibrating its business as it navigates a challenging environment for luxury sales.

• The company is shaking up the creative ranks at Christian Dior, its second-largest fashion label.
• It sold its stake in Stella McCartney’s namesake label back to the designer, although she will continue to advise the company on sustainability.
• Louis Vuitton will be the title sponsor for the Australian Grand Prix in March as part of its 10-year deal with Formula One (F1), which will also see LVMH watch brand Tag Heuer become the league’s official timekeeper.

Why it matters: While LVMH is hardly in trouble—and indeed is better equipped than most of its rivals to ride out a dip in luxury spending—its recent moves show a company looking for ways to cut costs and reignite interest in its labels.

• The company is reportedly in talks to bring current Loewe creative director Jonathan Anderson to Dior—an appointment that could restore the storied brand’s creative and commercial appeal after sales fell by 8% YoY in 2024, according to HSBC estimates.
• LVMH’s F1 partnership is set to be a potent marketing and sales opportunity given the sport’s newfound popularity and growing viewership.
• Its decision to let go of Stella McCartney’s label follows similar housekeeping moves to offload Off-White and a majority stake in its cruise retail business. There are also rumors that the company is exploring potential sales of its struggling DFS duty-free business and Marc Jacobs.

Our take: Luxury companies are girding themselves for a more difficult operating environment in 2025, as challenges in China and uncertainty in the US throw up considerable roadblocks to growth.

Brands best positioned to succeed during this time will be those that either cater to the upper echelon of customers, à la Brunello Cucinelli and LVMH’s Loro Piana—as well as those that can capture consumers’ attention with striking designs and campaigns, like Anderson has done at Loewe.

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