LVMH Eyes Sale of Marc Jacobs Amidst Slumping Luxury Market

LVMH is looking to shed ballast in the midst of weak international demand for luxury goods. The French group has reportedly begun to explore the sale of Marc Jacobs, according to The Wall Street Journal. The company has been looking at groups such as Authentic Brands, owner of brands such as Forever 21, Juicy Couture and Reebok, which recently bid for Reebok.

The possible sale of Marc Jacobs, which LVMH has controlled since 1997, is part of a move by the group to get rid of its smaller brands, at a time when its business is weak. The deal, which could close shortly, could reach a valuation of Marc Jacobs at around $1 billion.

In addition to Authentic Brands, companies with the same business model, such as Bluestar Alliance and WHP Global, are among those interested in taking over Marc Jacobs. These companies, which have grown strongly in recent years, specialize in controlling brands to outsource their different lines through licensing agreements.

LVMH expects to close the transaction shortly, which could reach a valuation of one billion dollars

LVMH closed the first six months of the current financial year with sales of €39.81 billion, down 4% from the €41.67 billion it posted in the same period of 2024.

he company’s net income, meanwhile, fell by 22% to €5.69 billion, from €7.26 billion in the same period last year. Operating income fell by 15% to €9.01 billion.

The fashion and leather goods division, the driving force behind LVMH’s business, ended the first half with an 8% drop in sales, to €19.11 billion, and a 4% decline in operating income, to €6.63 billion euros.