On April 30, French luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE strongly denied it was considering a potential sale of its fashion brand Marc Jacobs.
While Bloomberg reported that the French luxury conglomerate was exploring options amid interest from potential buyers, citing people with knowledge of the matter, a company spokesperson said, “The company strongly denies this.”
According to information provided by a source to Bloomberg, the sale discussions are in the early stages and LVMH has not decided how to respond to this interest. LVMH may continue to grow the business on its own.
It is relatively rare for LVMH to sell off brands under its umbrella. The last major sale occurred in 2016 when the company agreed to sell Donna Karan and Donna Karan New York (DKNY) for an enterprise value of $650 million.
LVMH, the world’s largest luxury conglomerate, controls 75 prestigious brands, including Tiffany & Co., Christian Dior, and Dom Perignon, of which Marc Jacobs is positioned as a relatively low-priced brand. For example, its Signature tote bag sells for 550 euros. Therefore, the company is focusing on repositioning itself as more of a luxury brand.
Although the group does not break out its performance by label, it has recently implemented a simplification of the Marc Jacobs product lineup. As a result, sales and profits were positive in FY2023, making Marc Jacobs one of the brands that achieved impressive results in the fashion and leather goods sectors.
The designer Marc Jacobs was the artistic director of Louis Vuitton for 16 years, from 1997 to 2013. Jacobs launched his eponymous brand “Marc Jacobs” in 1984. At the time, he was the youngest recipient of the New Fashion Talent Award given by the Council of Fashion Designers of America (CFDA).
Today, Marc Jacobs has multiple product lines, including ready-to-wear, accessories, perfume, and makeup in 60 countries in the world.