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LVMH Plans to Sell Marc Jacobs: Strategic Power Move or Risky Retreat?

Jomanda Heng
Aug 1
3 min read

For nearly three decades, Marc Jacobs has been part of the LVMH empire, standing as one of the few American luxury brands under the French conglomerate. However, recent reports suggest that the group may be preparing to part ways with the label. Industry insiders say this could mark one of LVMH’s most significant divestitures in recent years, raising questions about strategy, timing, and the future of Marc Jacobs itself.

Shifting Focus in a Slowing Luxury Market

The decision comes amid a challenging year for LVMH, with its fashion and leather goods division seeing a 15% decline in operating profit in the first half of 2025. Marc Jacobs, while respected for its creative influence, has not delivered the growth or margins of other LVMH staples like Louis Vuitton and Dior. According to CFO Cécile Cabanis, LVMH is ready to streamline its portfolio, focusing on brands that align with its long‑term vision and high-margin performance.

This move reflects a broader strategy that has already seen LVMH part ways with Stella McCartney, Donna Karan, DKNY, and most recently, Off‑White.

Rather than a sign of retreat, the sale appears to be a calculated power move. By shedding underperforming labels, LVMH can reallocate resources to strengthen its flagship houses. In a market where growth has slowed, especially in China, this strategy ensures the group remains focused on the brands that drive its global dominance.

Financial Incentives Behind the Exit

Analysts estimate that a sale could be worth €850 million to $1 billion. Such a windfall would give LVMH greater flexibility to reinvest in stronger divisions, fuel innovation, and reassure investors of its commitment to profitability. Streamlining the portfolio also helps the group avoid the risks of carrying weaker performers through an uncertain economic climate.

Industry sources confirm that talks are already underway, with discussions progressing through mid‑2025. While no official date has been announced, reports from Reuters and The Wall Street Journal suggest the deal could conclude in the coming months, provided terms are finalized.

Potential buyers are brand management groups known for their licensing and retail expansion strategies. Among the names in discussion are:

Authentic Brands Group (owners of Reebok, Forever 21)
WHP Global (owners of Bonobos, Joe’s Jeans, Vera Wang)
Bluestar Alliance (stakeholders in Off‑White, Bebe, and Palm Angels)

These firms specialize in scaling fashion brands through partnerships, licensing, and accessible luxury models—very different from LVMH’s couture-driven approach.

The Creative Identity

The most pressing concern is whether Marc Jacobs can maintain its creative identity. Under LVMH, Jacobs remained at the helm, ensuring the brand’s collections retained a designer‑driven focus. But with a transition to a licensing-heavy management model, critics fear the brand could lose its prestige and drift toward mass‑market appeal.

The upcoming Sofia Coppola documentary on Marc Jacobs has only intensified the conversation, as the sale risks overshadowing the narrative of the designer’s cultural impact. For many, the controversy isn’t financial—it’s about preserving Marc Jacobs’s legacy in an era of commercialization.

The potential sale of Marc Jacobs marks a significant turning point in luxury fashion. For LVMH, it is a bold rebalancing act that signals a sharper focus on core strengths. For Marc Jacobs, however, the future depends on whether new ownership can balance profitability with creative integrity, or risk reducing a storied house into just another name in the licensing game.

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