Princess Diana’s ‘black sheep’ knit becomes most valuable sweater ever sold at auction

King Charles and Princess Diana attend a polo match at Smith's Lawn, Guards Polo Club, Windsor, June 1983. Photo / Getty Images

A previously lost sweater worn by Princess Diana has sold for just shy of GBP£1 million (NZ$2.1 million).

The famous ‘black sheep’ jumper, which is made of red wool jumper and is emblazoned with white sheep and one black animal, went under the hammer at Sotheby’s Fashion Icons auction in New York and online, and fetched £885,000 ($1.8 million).

That’s 10 times more than its estimate of between £40,227 ($84,435) to £64,363 ($135,095).

What’s more, according to Sotheby’s, it’s the most anyone has paid for a sweater and the biggest sale of an item belonging to the late royal.

Sotheby’s global head of fashion and accessories Cynthia Houlton said: “This exceptional garment, meticulously preserved, carries the whispers of Princess Diana’s grace, charm, and her keen eye for fashion.”

The piece, which had gone missing for years, was first worn by Lady Diana Spencer at a polo match in 1981 when she was engaged to Prince Charles, who is now King Charles.

It was made by the label Warm and Wonderful, and due to Diana’s fashion influence, the then-new brand was overwhelmed with demand after she was seen in the garment.

Diana, Princess of Wales wearing a Muir and Osborne 'black sheep' sweater. Photo / Getty Images

The company said: “Much to our amazement, the first we knew of Lady Diana Spencer wearing the sweater was when we saw her on the front page of one of the Sunday newspapers.

“Her influence was impactful almost immediately thereafter, leading to a surge in sales and public awareness of our small label, for which we will be forever grateful.”

The jumper was sent back to the label for repairs upon the request of Buckingham Palace and they sent a new one.

The original got lost and was found gathering dust in an attic.

The design was discontinued in 1994, but a new version was released in 2020 in collaboration with Rowing Blazer.

Emma Corrin, who played Diana in ‘The Crown’ in Season Four, wore a replica.