LVMH Sells Marc Jacobs Intl. to WHP and G-III

Luxury conglomerate LVMH Moët Hennessy Louis Vuitton (Paris) has entered into a definitive agreement to sell its Marc Jacobs Intl. unit to brand-management firm WHP Global (New York). Terms of the deal were not disclosed in a press release disclosing the transaction.

Marc Jacobs has been part of the LVMH stable since 1997. With its sale, the brand will anchor WHP’s premium fashion vertical, joining Vera Wang, rag & bone and G-STAR. The licensing firm will own and operate the brand in partnership with G-III Apparel Group, which also controls former LVMH label Donna Karan. G-III’s specific role will be to operate parts of Marc Jacobs’ global direct-to-consumer and wholesale businesses.

Though it once had more than 250 stores, Marc Jacobs physical footprint is now much smaller. In the U.S., for example, it has six boutiques: three in New York, and one apiece in Atlanta, Aventura, Fla., and Los Angeles.

“I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years,” said Marc Jacobs, whose designs encompass handbags, small leather goods, ready-to-wear, footwear, eyewear and fragrances. “… I remain committed in my role as Creative Director of Marc Jacobs Intl. and look forward to this bright new chapter.”

In its coverage of the news, Business of Fashion noted, “It’s rare for LVMH to offload brands, but the deal comes as a prolonged slowdown in luxury sales has prompted the group to reevaluate its portfolio more actively, shedding some brands in order to focus on bigger, more strategic properties. It sold Off-White to Bluestar Alliance last year, offloaded its share in Stella McCartney back to the label’s founder in January and is reportedly exploring a sale of Rihanna-fronted Fenty Beauty.”