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LVMH Sells Marc Jacobs Amid Luxury Downturn
15 May
Summary
- LVMH is selling the fashion brand Marc Jacobs to WHP.
- The sale is part of LVMH's strategy to streamline its portfolio.
- Marc Jacobs' founder will remain as designer.
LVMH has agreed to sell the fashion brand Marc Jacobs to brand manager WHP. This move is part of the luxury group's effort to streamline its portfolio due to a sustained downturn in demand for luxury items.
The transaction, announced on Thursday, sees the label that peaked in the early 2000s changing hands. This is the latest in a series of disposals by LVMH of smaller, underperforming brands. The company is seeking to manage costs in a challenging market and re-focus on core profit drivers.
Bernard Arnault, LVMH's CEO, expressed confidence in the brand's future under WHP, noting designer Marc Jacobs' "rare creativity." Jacobs himself conveyed gratitude for LVMH's support and commitment to his role as creative director.
WHP, which also manages brands like Vera Wang and rag & bone, anticipates the addition of Marc Jacobs will bring its global retail sales past $9.5 billion. WHP will operate the brand in partnership with G-III Apparel Group.
