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LVMH has agreed to sell fashion brand Marc Jacobs to New York brand manager WHP as the luxury group reduces its portfolio following a global downturn.
According to the Paris-listed group, it is offloading smaller brands to manage costs and reflect on its primary profit drivers, including Louis Vuitton, Tiffany and Dior.
News of Marc Jacob’s sale follows the recent disposal of the Off-White label, a stake in Stella McCartney and a travel retail business based in Greater China.
While LVMH chief executive Bernard Arnault built the company through four decades of acquisitions, this has shifted to a strategy of selling assets over the past 18 months.
Financial terms were not disclosed, though people familiar with the matter said LVMH sought a valuation of approximately $1bn (£750m) for the fashion label.
Eponymous founder Marc Jacobs will remain as the designer for the brand, which will now sit alongside other WHP labels such as Vera Wang and Rag and Bone.
The US group will operate the brand through a partnership with G-III Apparel Group, bringing its total global retail sales to more than $9.5bn (£7.1bn).
LVMH first acquired a stake in the business in 1997. Marc Jacobs previously served as the creative director for Louis Vuitton during his 30-year tenure with the group.
Arnault said: “Marc Jacobs is a designer of rare creativity. I am confident that this new chapter will offer new avenues of opportunity for the brand.”
Jacobs added: “I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years. I remain committed to my role as creative director and look forward to this bright new chapter.”
