>> THE ZEITGEIST —Cathy Horyn just posted an insightful state of the union-type speech that she made a few nights ago, focusing on fashion and some of the economic challenges facing the industry.  Among the highlights: "'Green fashion' will become more and more important, and young consumers in particular will expect to see innovation and experimentation in this area . . . I am somewhat surprised that a big luxury group has not had the foresight to create a separate eco-brand of high-quality garments, with a casual yet sophisticated aesthetic. We’ve seen a number of niche labels, but not one that draws on the brand power and advertising reach of a luxury group." Perhaps that is precisely what LVMH has in mind for new investment Edun? [On the Runway]

>> For months, Bernard Arnault has been hovering around an unnamed ethical fashion brand — many guessed Bono and his wife Ali Hewson's label Edun, but she denied it outright back in March.

Turns out it was all a ruse — at the LVMH annual shareholder's meeting Thursday morning, Arnault said the company will announce "very soon" that it has taken an "important" stake in the eco-luxury label — LVMH is expected to remain a minority shareholder, but their stake is to be nearly 50 percent.  As part of the deal, LVMH will play a "very active role" in the development of Edun as a brand, including management of the company as well as granting access to its marketing and production resources.

The Edun investment marks the first foray by a major fashion conglomerate into the ethical fashion market.

>> INSIDER WIRE —Speaking of ethical fashion, Ali Hewson addressed rumors about LVMH taking a financial interest in Edun last night — "Everyone keeps asking us that. I wish it were true."  Which begs the question: Who else would Bernard Arnault have been hinting at?  Edun seems to fit the bill perfectly . . . [Style File]

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