The luxury world is buzzing with news that LVMH Moët Hennessy Louis Vuitton is in advanced negotiations to sell the iconic Marc Jacobs brand. According to The Wall Street Journal and Financial Times, the deal is estimated at around $1 billion and could be finalized very soon.
Who’s in the race to acquire Marc Jacobs?
Three major players are reportedly competing to take over the brand:
- Authentic Brands Group – the powerhouse behind Reebok,
- Bluestar Alliance – which recently snapped up Off-White and Palm Angels,
- WHP Global – owner of Vera Wang.
Sources close to the talks suggest the final decision might be imminent, although LVMH has yet to confirm the deal.
Why is LVMH letting go of Marc Jacobs?
The decision comes as the luxury sector faces a slowdown. LVMH’s Fashion & Leather Goods division its most profitable recorded a 9% drop in sales last quarter. As part of its strategy, the group is streamlining its portfolio, focusing on brands that align perfectly with its long term vision.
“We will not keep brands if we believe they are not the right fit or if we are not the right operator to manage them,”
stated Cécile Cabanis, LVMH’s CFO, during the latest earnings call.
The end of a 30 year fashion relationship
Founded in 1984 by Marc Jacobs and Robert Duffy, the brand became part of the LVMH family in 1997, coinciding with Jacobs’ appointment as creative director at Louis Vuitton a role he held for 16 years.
Over the years, Marc Jacobs has made waves with its iconic Tote Bags, playful ready to wear collections, and the ever popular Daisy fragrance, bridging the gap between luxury and contemporary style.
LVMH’s Strategy: sharpening its focus
If the deal goes through, Marc Jacobs will be the third brand to leave LVMH in less than a year, following the sales of Off-White to Bluestar Alliance and the group’s stake in Stella McCartney earlier this year.
This move signals a clear focus on high end maisons like Louis Vuitton, Dior, Fendi, and Celine, consolidating LVMH’s dominance in the ultra-luxury segment.
