LVMH Moët Hennessy Louis Vuitton (OTC: LVMUY) has agreed to sell the Marc Jacobs fashion label to WHP Global, ending nearly three decades of ownership. The transaction, announced Wednesday, will see G-III Apparel Group (NASDAQ: GIII) co-own the brand through a 50/50 joint venture with WHP, with G-III also taking on operational responsibilities. Marc Jacobs will remain in his role as founder and creative director.
Financial terms were not disclosed by LVMH or WHP, but G-III indicated it expects to invest approximately $500 million, funding the acquisition through existing cash and draws on its revolving credit facility. The deal is subject to regulatory approvals and is expected to close before the end of the year, though G-III projects completion in its fiscal third quarter of 2027.
The sale comes as LVMH refines its portfolio amid softening luxury demand. The conglomerate’s Fashion & Leather Goods segment posted a 2% organic decline in the first quarter, though group revenue reached €19.1 billion, eking out 1% organic growth. According to reports in the Financial Times, LVMH has been evaluating divestitures across fashion, beauty, and wine and spirits, with Bernstein analyst Luca Solca noting the company is scrutinizing underperformers that are “not performing” or “dragging on margins.”
Under the new structure, WHP and G-III will jointly control Marc Jacobs’ intellectual property, including trademarks and related assets. G-III will purchase and operate the brand’s global business, while WHP will manage licensing agreements where third parties pay to use the Marc Jacobs name on products or sell them in retail channels.
For WHP, the addition of Marc Jacobs strengthens its fashion portfolio, which already includes Vera Wang, rag & bone, and G-STAR. G-III’s existing brand stable features DKNY, Donna Karan, and Karl Lagerfeld, and it holds licenses for Calvin Klein, Tommy Hilfiger, and Levi’s. Morris Goldfarb, chairman and CEO of G-III, described Marc Jacobs as “one of the most influential names in fashion,” framing the acquisition as part of G-III’s strategy to expand its global brand lineup.
Bernard Arnault, chairman and CEO of LVMH, praised Jacobs as “a designer of rare creativity and unique vision,” and expressed confidence that the new ownership structure would unlock “new avenues of opportunity” for the brand. Jacobs himself confirmed he will continue as creative director.
Marc Jacobs and Robert Duffy founded the label in 1984. LVMH acquired a majority stake in 1997, the same year Jacobs became Louis Vuitton’s first creative director, a role that elevated the American designer to prominence within the European luxury industry.
G-III cautioned that the transaction will be dilutive to earnings in the first year following close, before becoming accretive thereafter. The company highlighted risks including regulatory hurdles, fluctuations in customer demand, retail operational challenges, potential issues with licensed products, and integration costs.
In Paris trading, LVMH shares rose 1.89% to €460.85. In New York, G-III Apparel Group gained 1.09% to $29.75.
