Kering said to be in discussion to end partnership with Stella McCartney’s label

London - French luxury group Kering is said to be in early discussion to sell back its 50 percent stake in premium label Stella McCartney to the British designer herself according to media reports.

Kering and Stella McCartney have been operating the business as a 50-50 joint venture since 2001, and issued the following joint statement on the reports: “As often between stakeholders, there are regular discussions about the future of the partnership. Any significant change to the current relationship would naturally be made public at the appropriate time.”

The potential talks come not long after Kering announced it would distribute the majority of shares in German sportswear brand Puma, as the company aims to restructure its business as a pure luxury group. As Kering turns its focus to its larger, fastest-growth and higher-margin luxury brands, such as Gucci, Saint Laurent, and Balenciaga, it seems highly likely that the group would seek to disinvest from its smaller brands.

"The Stella McCartney brand is one of Kering's smaller luxury brands within the 'other luxury' division and as such is most likely somewhat dilutive to profitability," said analysts at Berenberg in a note to Reuters.