LVMH sells Marc Jacobs, ending a thirty-year chapter

LVMH has agreed to sell Marc Jacobs to a joint venture between brand manager WHP Global and G-III Apparel Group. The buyers are raising up to $850 million for the deal — regulatory filings show each side putting in up to $425 million.

For LVMH it closes a chapter of almost thirty years and forms part of a broader pivot towards profitability in a difficult market, where conflict in the Middle East continues to disrupt tourist flows and weigh on spending in a key region. Last month the group said the war with Iran had cost it at least 1% of quarterly sales, as spending fell in the Gulf and fewer tourists travelled to Europe.

The deal also reflects a wider shift in the industry. Conglomerates such as LVMH are shedding non-core assets, while specialist brand managers and manufacturers have become the natural buyers of accessible luxury and American designer names. “It underlines a new model: own the intellectual property, licence it aggressively and keep operations light,” says supply chain consultant Brittain Ladd of Florida-based Chang Robotics.

Comparable deals have already moved well-known labels from large consumer companies into the hands of brand managers: Adidas sold Reebok to Authentic Brands in 2021 for up to €2.1 billion. LVMH’s talks with potential buyers for Marc Jacobs, including WHP Global and Reebok owner Authentic Brands Group, were reported as long ago as last year.

New York-based WHP Global said Marc Jacobs would become a central part of its premium portfolio, which already includes Vera Wang, rag & bone and G-STAR: the company’s global retail sales will exceed $9.5 billion.

The point that matters most to the brand’s followers: Marc Jacobs himself, who founded the label in 1984, will remain creative director after the deal closes and will continue to oversee creative direction and the runway collections. LVMH bought a controlling stake in his brand in 1997, the same year it appointed him the first creative director of Louis Vuitton. There Jacobs introduced ready-to-wear lines and collaborations with artists including Richard Prince and Takashi Murakami, fusing fashion, art and pop culture.

“I am forever grateful to Bernard Arnault for his support, his belief and his trust in me over these past 30 years,” Jacobs wrote on Instagram.

Under the terms of the deal, WHP and G-III will form a 50-50 joint venture that will own the Marc Jacobs intellectual property. G-III will acquire the brand and run it globally, while WHP takes on licensing. Financial terms were not disclosed. The transaction is expected to close by the end of the year. G-III, whose brands include Karl Lagerfeld and DKNY, will fund its share with cash and a revolving credit facility.