LVMH puts Marc Jacobs on the block: report

Luxury giant Moët Hennessy Louis Vuitton (LVMH) is in talks to sell fashion brand Marc Jacobs in a deal that could fetch $1 billion, The Wall Street Journal reported, citing people familiar with the matter.

LVMH has been talking to multiple parties, including Reebok owner Authentic, Brookstone owner Bluestar Alliance and Vera Wang parent WHP Global, the report said, adding that a deal is likely soon if the talks don’t fall apart.

While LVMH has built its empire through high-profile acquisitions, including its 2021 purchase of jeweler Tiffany & Co., the group has also shown a willingness to divest brands that no longer align with its strategy.

In 2016, it offloaded Donna Karan and DKNY in a deal valued at $650 million. More recently, it exited stakes in Off-White and Stella McCartney.

“We will not keep brands if we believe they are not a good add-on, or we are not the right people to operate them,” said LVMH chief financial officer Cécile Cabanis in the company’s earnings call last Thursday.

Founded in 1984 by designer Marc Jacobs and business partner Robert Duffy, the label became known for its cult-favorite tote bags and the bestselling Daisy perfume.

A potential sale comes as LVMH has been working to revive the brand, in part by streamlining its product offerings.

The Paris-based conglomerate, led by Bernard Arnault, owns a portfolio of luxury powerhouses including Dior, Celine, and Hennessy cognac.

Deal activity in the luxury sector has picked up pace. In April, Prada announced it would acquire Versace from Capri Holdings in a nearly $1.4 billion transaction.