Lagerfeld had signed another "long-term" contract with Fendi, continuing an association that has endured for half of the house's 80-year history.
"[Lagerfeld] embodies Fendi's spirit," Arnault said on Wednesday. "He is for sure a key player in Fendi's success. Four or five years down the road, Fendi will be a top Italian brand."
The announcement, which came with few details, ended a long period of uncertainty during which Lagerfeld was often vocal about his discontent with Fendi's development.
On Wednesday, seated between Arnault and Dior chief Sidney Toledano, who also oversees Fendi's strategy, Lagerfeld said simply, "I am so happy."
And a bit nostalgic. He and Arnault both recalled that one of Lagerfeld's first designs for Fendi was a dress for Silvia Venturini Fendi, today its accessories and men's wear designer, but then a very well-dressed primary school student.
Lagerfeld also related that he once worked with Adele, the founder and matriarch of the Fendi empire, in a former cinema on Via Borgognona where they created the double F logo. "It's been a wonderful adventure," he said.
However, he noted that Fendi needed management resources and a better structure, which the assembled panel assured were now in place.
"I'm fortunate enough that I have ideas come to my mind," he said in response to a question about his design prowess. "I need to rely on a team of strong, capable people. Being successful in this business means good teamwork."
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The Fendi ceo said Arnault's investment in the seven-story palazzo, with the world's largest Fendi store at its base, proves that LVMH is committed to the house for the long haul. As reported, Fendi plans to redo its entire 117-store network to emulate the sumptuous new Peter Marino concept unveiled here at Largo Goldoni.
"We didn't reinvent Fendi's DNA; it's just that the new store concept sheds a different light on the product," said Burke.
Indeed, Arnault, while praising the warm colors and modernity of Marino's new designs, grumbled about the shortcomings of the previous "dark store" concept, calling it "drab" and "grim."
Arnault, who initially teamed up with Prada Group to buy a majority of Fendi from the five Fendi sisters in 1999, also acknowledged that it took longer than expected to find the right formula. "Life was quite complicated," he said, alluding to family squabbles and an uneasy rapport with Prada's Patrizio Bertelli. LVMH ultimately took majority control in 2001 and today holds a 94 percent stake. The balance is held by chairman Carla Fendi.
ahh I was hoping someone else would take Karl's place 
they need to change it up a bit
tott, its so nice to have you back on the Spot 
Though I wouldn't mind snapping up a couple percentages of Chanel.
