Luxury conglomerate LVMH is reportedly looking to sell fashion brand Marc Jacobs for about $1 billion.
LVMH is discussing deals with multiple parties and could reach a deal soon, the Wall Street Journal (WSJ) reported Friday (July 25), citing unnamed sources.
LVMH did not immediately reply to PYMNTS’ request for comment.
According to the WSJ report, the company is known for both buying and selling assets. It acquired Tiffany in 2021, sold Donna Karan and DKNY in 2016, and recently sold its interests in Off-White and Stella McCartney.
LVMH Chief Financial Officer Cécile Cabanis said Thursday (July 24) during an earning call, per the report: “We will not keep brands if we believe they are not a good add-on, or we are not the right operator to operate them.”
PYMNTS reported Thursday that LVMH said during the earnings report that its overall business performance declined in the first half of the year, with earnings down 22% compared to the same period in 2024.
The company cited macroeconomic factors such as currency fluctuations, decreased tourist traffic and comparisons to stronger year-ago performance for the lackluster performance.
PYMNTS reported in February that the luxury market was undergoing a period of mixed results and shifting dynamics, with high-income consumers becoming more price-conscious and seeking greater value and quality in their luxury purchases.
LVMH CEO Bernard Arnault said at the time during an earnings call that the luxury industry was in the midst of “highly turbulent times.”
In April, tariffs had become an issue for the industry, and LVMH executives said the company was prepared to increase prices on its products and take other mitigation strategies if negotiations over tariffs were unproductive.
Executives said the company could launch a mitigation strategy of which “price increase is one part,” and pass along the costs of tariffs to consumers.
When LVMH sold Donna Karan International, the parent firm of both Donna Karan and DKNY, in 2016, PYMNTS reported that Donna Karan had moved toward wholesale and away from higher-priced apparel, leaving the brand out of step with its luxury-focused parent. LVMH’s shares rose about 1% on the deal’s announcement.
