Louis Vuitton owner LVMH will temporarily close Rihanna's fashion venture Fenty

<p><img src="https://static4.businessinsider.com/image/5fff25f4a8de7700187d3a02-1778/fenty beauty.jpg" border="0" alt="fenty beauty" data-mce-source="Vittorio Zunino Celotto/Getty Images for Sephora loves Fenty Beauty by Rihanna" data-link="https://www.gettyimages.com/detail/news-photo/general-view-of-sephora-loves-fenty-beauty-by-rihanna-store-news-photo/944160438'adppopup=true"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>LVMH, the owner of luxury brands Louis Vuitton and Christian Dior, has suspended collaboration with R&amp;B singer Rihanna on her Fenty ready-to-wear fashion line, Women's Wear Daily reported on Wednesday.&nbsp;</p><p>LVMH did not immediately respond to Insider's request for comment.&nbsp;</p><p>Rihanna's fashion venture, which was launched in 2019 in Europe, will be "put on hold" pending better conditions, the French luxury good conglomerate said in a statement, according to WWD and Reuters. Women's Wear Daily was the first to report the news.&nbsp;</p><p>LVMH and Rihanna will concentrate on the long-term development of the Fenty business with a focus on skincare, cosmetics, and lingerie, the publications said.</p><p>The LVMH-backed investment fund L Catterton has taken a stake in Rihanna's lingerie line, Savage X Fenty, WWD reported.</p><p>In December, Savage X Fenty was reportedly<a href="https://www.businessinsider.com/rihanna-savage-x-fenty-lingerie-brand-raising-100-million-nyt-2020-12"> seeking to raise $100 million</a> in funding to expand in Europe and launch a new line of athletic wear. The company appointed Goldman Sachs to raise the new round of funding which could give Savage X Fenty a valuation of $1 billion, according to <a href="https://www.nytimes.com/2020/12/14/business/dealbook/roblox-tech-ipos.html">The New York Times' DealBook newsletter</a>.</p><p>Fenty was the first fashion venture that LVMH created from the ground up since Christian Lacroix's brand launched in 1987. It was established to develop the singer's joint cosmetic venture with the French group with clothing, accessories, and shoes.&nbsp;</p><p>Rihanna launched cosmetics brand Fenty Beauty in 2017 and <a href="https://www.businessinsider.com/fenty-beauty-is-on-track-to-outsell-all-the-kardashian-beauty-lines-2018-1">reportedly competed with other makeup brands</a> such as Kylie Cosmetics. Fenty Beauty sales were five times Kylie Cosmetics in its first month of operation in September and 34% higher the following month.</p><p>LVMH was financially impacted by the pandemic and store closures. In October it <a href="https://www.businessinsider.com/lvmh-brands-iconic-luxury-goods-bernard-arnault-2019-10">reported a revenue</a> of $37 billion, down 21% compared to the same period a year before. The luxury conglomerate had a revenue reaching&nbsp;<a href="https://www.lvmh.com/news-documents/press-releases/record-results-for-lvmh-in-2019/" data-analytics-module="body_link" data-analytics-post-depth="20" data-uri="31147b25b981dd81a87ffe902cf3b8ae">about $59 billion in 2019</a>.</p><p>&nbsp;</p><p>&nbsp;</p><p>But in a press statement, the company said it was showing "significant improvement" in its third quarter. Its fashion and leather goods division, for which organic revenue declined by 11% over the first nine months of the year, saw a double-digit rebound of 12% growth in the third quarter.&nbsp;</p><p><a href="https://www.businessinsider.com/lvmh-louis-vuitton-pause-rihanna-fashion-brand-fenty-2021-2#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/worlds-most-expensive-liquid-thoroughbred-horse-semen-2020-3">Why thoroughbred horse semen is the world's most expensive liquid</a></p>
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