LVMH in conversations to unload the fashion label Marc Jacobs, say sources

By Abigail Summerville and Mrinmay Dey

(Reuters) French luxury goods group LVMH is in discussions with several buyers to derive their fashion label Marc Jacobs.

The company conducted by Bernard Arnault had discussions with potential buyers, including the reebok-out owner authentic Brands Group and WHP Global, said the sources that asked not to be named because the discussions are confidential.

Authentic brands refused to comment on the matter, while WHP did not react immediately.

The owner of Brookstones Bluestar Alliance, according to Wall Street Journal, which previously reported the news, is also a free one for Marc Jacobs that could be worth around 1 billion US dollars.

LVMH, Marc Jacobs and Bluestar Alliance did not immediately respond to inquiries about comments on the WSJ report.

In 2024, Bloomberg reported that LVMH examined strategic options for the label with consultants after they had received interest from potential buyers, even though the company denied the claim at this time.

The luxury fashion brand, founded in 1984 by the American designer Marc Jacobs, is known for its versatile, bold designs that mix high fashion with street style. In 1997 LVMH Jacobs guided to lead the Louis Vuitton brand and acquired a participation in the designer’s label of the same name.

The journal said that a deal could soon be completed, provided that the talks do not fall apart.

LVMH recently unloaded some of his brands to optimize its portfolio. Last year it sold the off-white clothing founded by the late Virgil Abloh 2012 to the New York, based company Bluestar Alliance, to achieve an undisclosed value.

Another label, Stella McCartney, at the beginning of this year, bought back the minority stake held by LVMH in the house, which she had founded about five years after the purchase of the luxury group.

McCartney, who is famous neither leather nor fur, said that it will continue to advise LVMH boss Arnault and the group’s management team on sustainability matters.

The business in the luxury retail sector has attracted attention in Europe. At the beginning of this year, Prada Versace acquired Capri Holdings and combined two legendary Italian fashion brands worth 1.4 billion US dollars.

The sale of LVMHs in the second quarter, which includes products such as Louis Vuitton handbags, dior dresses and Moet & Chandon champagne, easily reached the market expectations.

The company’s shares rose with analysts, which pointed out the hope of the horizon when the group recorded some signs of recovery in the most important Chinese market.

Adam Cochrane, analyst of Deutsche Bank, said that the results were not “outstanding” in the second quarter, but there were some “glimmer of hope”.