LVMH adds optionality with Molli minority stake; US and e-comm to scale
Bottom Line Impact
For LVMH, the stake offers low-risk growth optionality in premium knitwear with potential 100-200 bps margin gains at brand level and a pathway to US-led scale that enhances portfolio reach while protecting ultra-luxury positioning.
Key Facts
5- LLV becomes a minority shareholder in Molli; first external capital since 2014 under Charlotte de Fayet
- E-commerce accounts for 35% of revenue, with international customers contributing over 50% of online sales
- International markets represent roughly one-third of overall sales; international e-comm alone exceeds 17.5% of total revenue
- United States is Molli's second-largest market and the primary expansion focus
- Financial terms undisclosed; governance and growth support expected via LLV network and capabilities
Time Horizons
Key Roles Affected
Executive Summary
LVMH Luxury Ventures takes a minority stake in French knitwear house Molli, unlocking a capital-backed plan to accelerate US expansion and deepen digital direct-to-consumer that already represents 35% of sales. The move builds portfolio adjacency below Loro Piana, creating option value in women-led knitwear and a data-rich testbed for scaling niche craftsmanship brands.
Actionable Insights
Immediate Actions (Next 30-90 days)
Onboard Molli to 24S and launch a US-focused digital funnel with CPA cap of $80-$120 and 90-day payback, leveraging lookalike audiences from LLV portfolio and LVMH-owned retail media.
Rationale: E-comm already 35% of revenue with strong international skew; structured acquisition targets profitable scaling while capturing cross-border demand.
Role affected:CMO
Urgency level:immediate
Implement milestone-based capital tranches tied to 3 KPIs per quarter: US DTC net revenue growth (+30-40% QoQ from a small base), repeat purchase rate (>25% at 12 months), and gross margin improvement (+100 bps by Q4).
Rationale: Protects downside in an undisclosed-terms deal and aligns capital to unit economics and retention quality.
Role affected:CFO
Urgency level:immediate
Short-term Actions (6-12 months)
Position Molli below Loro Piana with clear price architecture and material storytelling, and authorize a 2-city US retail pilot with 6-month pop-ups to validate $12k-$15k sales per square meter productivity before permanent leases.
Rationale: Prevents intra-portfolio cannibalization and de-risks capex by using test-and-learn retail economics tied to conversion and repeat rates.
Role affected:CEO
Urgency level:short-term
Secure 12-month yarn commitments across cashmere and merino with dual-sourcing and traceability, targeting 5-8% raw material cost reduction and 20% lead-time compression.
Rationale: Mitigates fiber price volatility and supports colorway breadth without stockouts ahead of US rollout.
Role affected:Chief Supply Chain Officer
Urgency level:short-term
Risks & Opportunities
Primary Risks
- US softening in aspirational luxury could depress sell-through and lengthen payback on store pilots
- Premium yarn price volatility and capacity bottlenecks constrain margin and on-time deliveries
- Portfolio overlap risk with Loro Piana if pricing and narrative are not sufficiently differentiated
Primary Opportunities
- Scale DTC in the US to lift international mix and lifetime value through CRM-led retention
- Selective wholesale with top-tier partners to drive awareness and validate new markets before capex
- Sustainability and traceability in knitwear to win Gen-Z and HENRY segments seeking provenance