Bernard Arnault, LVMH Moet Hennessy Louis Vuitton chairman, confirmed that Karl Lagerfeld will stay with Fendi as he signed another “long-term” contract with the house.

Lagerfeld's collaboration with the house has already lasted for 40 years, and, despite his recent dissatisfaction with the result of Fendi's work, he has no intention to leave. "I am so happy," stated the designer at a press conference last week, reports WWD. Good part of his work experience is connected with the house history, and so are the memories: Lagerfeld recalls designing a dress for a stylish student Silvia Venturini Fendi, now the house's men's wear and accessories designer.

With better management,  the designer is supposed to make the Fendi's house profitable again: "We will reach our target by 2007, or earlier I hope," said Bernard Arnault answering when the house will return all the losses – last year the company lost 250 million euros on sales. The chairman strongly believes that the house has bright future with Lagerfeld: "[Lagerfeld] embodies Fendi's spirit. 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."

It is speculated that Fendi is going to redo its entire 117-store network as Arnault, who owns  the bigger part of the Fendi house, found the previous concept "dark," "drab" and "grim." He also hinted at family brawls and uneasy relationships with Prada's Patrizio Bertelli, having explained why finding the right road for the company took so much time.