LVMH to divest Marc Jacobs in USD 1B deal
LVMH aims to streamline its portfolio to concentrate on its most lucrative and iconic brands.
FRANCE – LVMH is set to divest its Marc Jacobs fashion brand in a deal valued at around USD 1 billion.
This move comes amid a broader strategic reshuffling as LVMH seeks to focus on its core, more profitable luxury brands during a period of declining sales and profit pressure.
LVMH has reportedly been in confidential talks with potential buyers, including Authentic Brands Group (owner of Reebok and other brands), WHP Global (which owns Vera Wang), and Bluestar Alliance (recent acquirer of Off-White and Palm Angels).
These prospective buyers specialize in acquiring and licensing established fashion labels.
This move comes after LVMH acquired the American fashion label in 1997 and has been overseeing it for nearly three decades.
The decision comes as LVMH contends with a significant downturn in the luxury sector, reporting a 22% drop in net profit and a 4% decrease in sales in the first half of 2025.
The luxury slowdown is attributed to weakening global demand, trade uncertainties, reduced spending from Chinese consumers, and price increases that have deterred some buyers, especially in the U.S.
The sale of Marc Jacobs follows LVMH’s recent divestments of smaller contemporary labels such as Off-White in 2024 and its stake in Stella McCartney earlier in 2025.
LVMH H1 FY2025 financial highlights
LVMH has recently reported solid financial results for the first half of 2025, recording a revenue of €39.8 billion(USD 46.08 billion) despite a challenging geopolitical and economic environment.
This represents a 4% decline compared to the previous year.
Profit from recurring operations reached €9 billion (USD 10.55 billion), corresponding to an operating margin of 22.6%, while the Group share of net profit amounted to €5.7 billion (USD 6.70 billion), down 22% year-on-year.
The business segments showed varied trends, with the flagship Fashion and Leather Goods division declining by 8%, watches and jewellery down slightly by 1%, and perfumes and cosmetics also down 1%.
Meanwhile, the Selective Retailing segment, including DFS Group and Sephora, showed operational profit improvement despite flat revenues.
Geographic details highlighted resilient European and US markets, while Asia, particularly Japan, faced difficulties due to prior exceptional sales that distorted comparisons.
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