New York (AFP) – French luxury giant LVMH will sell its Marc Jacobs brand to US brand firm WHP Global, the two companies said Thursday. Marc Jacobs, acquired by LVMH in 1997, will keep the namesake American designer as creative director once the transaction is finalized — expected by the end of the year once necessary regulatory approvals have been obtained.
After a surge in popularity in the early 2000s, the Marc Jacobs fashion house lost momentum and made several strategic shifts to find a viable business model. According to several media outlets, it has returned to profitability. After the sale, another company, G-III, will then purchase and co-own part of the Marc Jacobs brand alongside WHP Global, according to a statement from G-III. WHP Global is home to brands such as rag & bone, G-Star, and Vera Wang.
“I am forever grateful to Bernard Arnault for his support, belief, and trust in me over the last 30 years,” Jacobs said in the joint statement, referring to LVMH’s boss, who is France’s richest man. Before dedicating himself to his own brand, Jacobs worked for 16 years as artistic director of Louis Vuitton — LVMH’s flagship brand. “I remain committed in my role as Creative Director of Marc Jacobs International and look forward to this bright new chapter,” the designer added. Arnault praised Jacobs’ “unique vision” and “undeniable” impact on the fashion world.
A leading brand at the turn of the millennium, Marc Jacobs later found itself losing steam and began a wave of strategic changes in a bid to find a viable business model. WHP Global and G-III will form an equally owned joint venture that will hold Marc Jacobs, G-III said in a separate statement, adding that its investment would be around $500 million, financed with available cash and debt. According to the statement from LVMH and WHP Global, the agreement will see G-III operate Marc Jacobs’ direct-to-consumer and wholesale businesses.
The Wall Street Journal, citing sources familiar with the matter, reported in July last year that LVMH was in talks to sell Marc Jacobs in a transaction valued at $1 billion, or 850 million euros. According to the US newspaper, the French group was in talks with several potential buyers, including US groups Authentic, the owner of Reebok, and WHP Global.
LVMH, the world’s largest luxury group which owns Dior, Celine, Moet Hennessy, and other brands, posted a 22-percent drop in net profit in the first half of 2025. Now the brand is reporting “good resilience in a geopolitical and economic environment that remained disrupted, amplified by the conflict in the Middle East.” Overall revenue fell six percent in the first quarter, LVMH said in April.
© 2024 AFP
