LVMH sells fashion house Marc Jacobs to G-Star owner WHP Global

After a partnership spanning nearly thirty years, the French luxury group LVMH is selling the Marc Jacobs fashion brand to WHP Global, the owner of brands such as Vera Wang, G-Star, and Toys R Us. G-III Apparel Group, owner of DKNY and Karl Lagerfeld, is also coming on board through a 50/50 joint venture.

Founder Marc Jacobs remains creative director

The buyers are reportedly paying up to $850 million (€782 million) for this acquisition. WHP Global and G-III will jointly own the intellectual property of Marc Jacobs through a joint venture. G-III will take over the operational management of the retail network and wholesale activities, while WHP Global will focus on licensing. Founder Marc Jacobs remains creative director. He expressed his gratitude to Bernard Arnault, chairman and CEO of LVMH, for three decades of support and looks forward to the next chapter for the brand.

LVMH wants to focus on its largest brands and is therefore reviewing its portfolio. This transaction follows the sale of Off-White to Bluestar Alliance last year and the divestment of its stake in Stella McCartney in January. According to reports, the group is also exploring a potential sale of Fenty Beauty.

The luxury sector is feeling the effects of ongoing tensions in the Middle East, which are causing consumers to travel less and be more cautious about spending. LVMH reported that the war in Iran reduced the group’s revenue by at least one percent in the last quarter. Weaker demand in the Gulf and reduced tourism in Europe are exacerbating the pressure.