LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury conglomerate, is reportedly exploring the sale of its fashion brand Marc Jacobs. The deal is expected to be valued at approximately $1 billion, and negotiations are said to be underway with multiple potential buyers.
Rumors of a potential sale first surfaced in April 2024, but LVMH firmly denied the possibility at the time. However, according to sources familiar with the matter, LVMH has since appointed J.P. Morgan as its financial advisor and is currently in discreet discussions with several interested parties. Among the contenders are Authentic Brands Group, the parent company of Reebok; WHP Global; and Bluestar Alliance—all U.S.-based companies with strong expertise in licensing.
During its earnings call on July 24, LVMH’s Chief Financial Officer, Cécile Cabanis, stated: “We will not keep brands if we believe they are not a good add-on, or we are not the right operator to operate them.” The comment was widely interpreted as a signal of a potential shift in the group’s portfolio strategy, particularly regarding Marc Jacobs.
LVMH has a history of divesting brands that no longer align with its long-term vision. In 2016, it sold Donna Karan and DKNY for a reported enterprise value of $650 million. More recently, the group divested its stakes in Off-White and Stella McCartney as part of a broader effort to streamline its brand portfolio.
Among the reported suitors, Authentic Brands Group has been expanding its luxury portfolio through a joint venture with U.S. department store Saks. WHP Global acquired Vera Wang earlier this year, while Bluestar Alliance purchased the rights to Off-White from LVMH in 2024.
Marc Jacobs rose to prominence after being appointed creative director of Louis Vuitton in 1997. With support from LVMH, his eponymous brand grew rapidly, particularly through the success of the Marc by Marc Jacobs line, which found a strong following among younger consumers and made a notable impact in the accessories market.
Following the departure of co-founder Robert Duffy, the brand underwent several strategic shifts. Under current CEO Eric Marechalle, the company operates with a two-pronged approach: Marc Jacobs himself designs high-concept runway collections, while a separate team produces commercially oriented lines inspired by his work. The brand’s fragrance and beauty segments also remain strong contributors to its performance.
Meanwhile, LVMH reported a 22% drop in net profit for the first half of 2025, totaling €5.7 billion. The group cited currency fluctuations, reduced tourist traffic, and tough comparisons to a strong prior year as key factors in its overall revenue and earnings decline. As a result, the company is accelerating efforts to optimize its brand portfolio.
If the sale of Marc Jacobs materializes, it would mark a significant moment in LVMH’s strategic evolution—and a broader shift in luxury, as U.S. licensing firms continue to acquire high-profile designer brands. The ultimate challenge will lie in whether the buyer can preserve the brand’s creative integrity and global prestige under a new ownership model.
Copyright © 2025 Oui Speak Fashion. All rights reserved.