Hermès has begun talks to sell its 45 per cent stake in the Gaultier fashion brand, a move that would sever the luxury group’s ties with Jean-Paul Gaultier.
The French company, which raised its stake in Gaultier’s business from 35 per cent to 45 per cent in 2008, said yesterday that it had been approached by potential buyers and was reviewing all options.
Gaultier still controls the company that bears his name and remains one of the longest-enduring French designers, alongside Karl Lagerfeld, at Chanel. The Gaultier brand was founded in 1976 and is best known for its sailor-themed outfits. It has 30 boutiques worldwide but makes most of its profits from licence deals, especially perfume. Sales in 2010 were up €3 million to €26 million (£23 million), but the company is still slightly loss-making.
Gaultier, who designed womenswear collections for Hermès, left the group last year after the death of Jean-Louis Dumas, Hermès’ charismatic former head, who had hired him. The designer, whose ties to Hermès date back to 1999, had called his departure “the end of a love story”.
Gaultier was replaced by Christophe Lemaire, of Lacoste, whose first collection, presented in March, was received positively by fashion critics.
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The sale by Hermès of its Gaultier holding is expected to have only a minor impact on group revenues, according to analysts.
Consolidation has returned this year to the luxury goods sector after the industry bounced back from the 2009 slump much faster than expected. LVMH, controlled by Bernard Arnault, agreed to acquire Bulgari last month. It previously had built up a 20.2 per cent stake in Hermès.
Positive investor sentiment is also encouraging unlisted fashion groups to consider floating on the stock market. Prada, of Italy, plans to list in Hong Kong, in a float that could value it at about €8 billion.