LVMH invests into Stadium Goods

1 min readUpdated Feb 14, 2018Feb 14, 201812:00 AM

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LVMH, the parent company of brands including Louis Vuitton, Dior and CÉLINE, announced plans for its Luxury Ventures initiative in 2017 with the aim of acquiring minority stakes in emerging luxury brands.

The latest brand to get backing from the programme is New York’s Stadium Goods.

As far as streetwear connoisseurs are concerned, New York City’s Stadium Goods is the pinnacle in the sneaker world.

Details on what role LVMH Luxury Ventures will take in the reseller are unclear, although it is rumored that this backing could allow Stadium Goods to expand. The store — which is the location for most Sneaker Shopping episodes — has been open for just over two years and the team behind have previously said about potential plans to move into merch and open a second physical location.

Back in 2017, prior to LVMH’s backing, Stadium Goods raised $4.6 million USD in equity funding and was predicted to gross more than $100 million USD in 2017.

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What this means

LVMH's investment in Stadium Goods is a shrewd manoeuvre, positioning the luxury conglomerate firmly in the lucrative, fast-growing streetwear resale sector. This contrasts with LVMH's typical direct brand acquisitions like Louis Vuitton, indicating an agile strategy shift towards high-growth, non-traditional luxury segments. The move will undoubtedly pressure competitors like Palace Streetwear, which recently opened its first independent store in Shanghai, to consider similar strategic alliances or expansions to maintain market relevance. The risk lies in integrating a niche, independent reseller into a luxury giant without diluting its street credibility, but the financial backing and predicted 2017 gross of $100 million USD suggest significant upside. Watch for Stadium Goods' first new store opening following this backing.

Maria Santos · Retail News Asia newsroom

Questions & Answers

What is the primary objective of LVMH's Luxury Ventures initiative?

LVMH's Luxury Ventures initiative, launched in 2017, aims to acquire minority stakes in emerging luxury brands. This strategic approach allows them to support newer companies within the luxury sector.

How long has Stadium Goods been in operation?

The Stadium Goods store has been open for just over two years. Despite its relatively short operating history, it has gained recognition, including being the location for most Sneaker Shopping episodes.

What were Stadium Goods' financial predictions for 2017?

Prior to LVMH's backing, Stadium Goods had raised $4.6 million USD in equity funding in 2017. They were also predicted to gross more than $100 million USD during that same year.

What are Stadium Goods' potential plans for expansion?

The team behind Stadium Goods has previously mentioned potential plans to move into selling merchandise. They have also considered opening a second physical location, suggesting ambitions beyond their current store.

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