LVMH auction sale signals new strategy

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LVMH Moet Hennessy Louis Vuitton, announced that it has agreed to sell the company's majority stake in the fine art auction house, Phillips de Pury & Luxembourg. Three years ago, LVMH chairman Bernard Arnault acquired Phillips with hopes of building a prestigious art business to rival that of PPR chairman and Gucci backer Francois Pinault, owner of auction house Christie's.

As part of its strategy to concentrate on the development of luxury products, LVMH said in a statement today it will reduce its stake in the auction house to 27.5% by agreement with the two principals Simon de Pury and Daniella Luxembourg and outside investors.

The sale marks the first major disposal from the luxury goods group's retailing division, which was declared "non-core but not for sale" last December. The move was welcomed by the financial community although analysts see no ready buyer for DFS or Sephora, despite unconfirmed reports that LVMH and Germany's Douglas Holding have been in talks for the Sephora Europe operation.

Anne Sutherland Fuchs, who has been ceo of Phillips de Pury & Luxembourg, will become executive vice president of LVMH, reporting to Antonio Belloni, group managing director, with responsibility for strategic projects in the US market, based in New York.