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LVMH Signs New Deal For Karl Lagerfeld To Design FendiLuxury goods maker LVMH Moet Hennessy Louis Vuitton SA said late Wednesday it has signed a new contract with Karl Lagerfeld for the fashion designer to remain creative director at its unprofitable Fendi label.
In a statement released to coincide with the opening of Fendi's 117th store in Rome, LVMH, the world's biggest luxury goods maker, said "cooperation (with Lagerfeld) has been renewed and strengthened".
But Paris-based LVMH, the home of brands from Dior to Dom Perignon, didn't disclose terms of the new contract for Lagerfeld, one of the biggest names in fashion.
Lagerfeld, also head designer at privately held French fashion house Chanel, has expressed discontent with management strategy at Fendi in the past.
Founded as a furrier but now a fully - fledged luxury brand, Fendi was acquired by LVMH in a gradual process starting in 1999 that has cost the French company upwards of EUR1 billion.
But Wednesday Lagerfeld said he's happy to continue working with both Fendi and Arnault.
Progress in turning Fendi around is viewed by analysts as a key factor in LVMH's progress going forward.
LVMH doesn't disclose profit for each of its near-50 stable of brands, but analysts estimate Fendi lost at least EUR35 million last year as LVMH continues to invest in beefing up its stores network.
more: money.iwon.com/jsp/nw/nwdt_rt.jsp... (296)
May 20, 2005 | Viewed 30,031 time(s)
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