In a statement released this morning, Gabriela Hearst announced that the brand has received a minority investment from LVMH Luxury Ventures, an LVMH subgroup that invests in “iconic” brands. (Since its launch in 2017, the entity’s two previous investments were in French apothecary brand l’Officine Universelle Buly and the sneaker resale shop Stadium Goods, which has since been acquired by Farfetch.)
Terms of the deal were not disclosed, but the size of the investment LVMH Luxury Ventures allocates to each company is said to range from 2 million euros ($2.3 million) to 14 million. The financial backing from LVMH is intended to support the ongoing global expansion of the brand, which sees $10 million in sales and has a permanent showroom in Paris. As of November 2018, it also has a flagship store at the Carlyle House on Madison Avenue in New York.
Hearst launched her namesake label in 2015 after taking over her father’s ranch in Uruguay. Armed with the vision to create a luxury ready-to-wear and accessories brand that was the complete opposite of fast fashion — a line that was dictated by timeless style versus trend, that boasted deliberate designs, that took into consideration the source of its materials and the artisans behind its garments — the company soon garnered praise, accolades and nominations from the industry, including the International Woolmark Award, and it was the 2018 finalist for the CFDA Womenswear Designer of the Year award.
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Often described as “luxury with a conscience” or “honest luxury,” Hearst’s ethical and socially responsible brand not only reflects the slow fashion movement but also resonates with the increasing number of consumers who are demanding transparency and sustainability from retailers.
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