LVMH: Close to a billion-dollar sale?
Hot rumor at LVMH: According to insiders, the luxury giant is in advanced talks about selling the fashion brand Marc Jacobs. The potential deal could be valued at around one billion dollars.
As the Wall Street Journal reports, potential buyers include Authentic Brands Group, the owner of Reebok, and Bluestar Alliance, which controls Brookstone, among others. WHP Global, the parent company of Vera Wang, is also said to have expressed interest. Negotiations are at an advanced stage; insiders say an agreement could be reached soon, provided the talks don't fall apart at the last moment.
Founded in 1984, Marc Jacobs is known for its iconic products such as tote bags, perfumes—most notably Marc Jacobs Daisy—and unconventional designs. In recent years, LVMH has sought to refocus and streamline its offerings in order to revitalize the brand.
Marc Jacobs is part of LVMH's largest division, fashion and leather goods. Revenues there fell by nine percent in the second quarter (DER AKTIONÄR reported) . The segment is considered the group's most important source of income and contributed almost 80 percent to operating profit in 2024.
Change of strategy at LVMH?LVMH is generally known as an aggressive buyer, having built a broad portfolio of prestige brands over the years—including Dior, Fendi, Celine, and the jeweler Tiffany & Co., which it acquired in 2021. However, CEO Bernard Arnault also sells brands that no longer fit its strategic direction. For example, the group sold Donna Karan and DKNY for around $650 million in 2016. Most recently, LVMH also sold its stakes in Off-White and Stella McCartney.
CFO Cécile Cabanis also stated during the recent quarterly earnings call: "We will not retain brands if we believe they are not a good fit or if we are not the right operator to manage them."
By selling peripheral brands like Marc Jacobs, LVMH could focus more strongly on its core brands with high earnings potential. The stock remains an exciting turnaround candidate and is on AKTIONÄR's recommendation list.
Note on conflicts of interest The board member and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions in the following financial instruments or derivatives related to them mentioned in the publication, which could benefit from any price development resulting from the publication: LVMH.
The author holds direct positions in the following financial instruments or derivatives related to them mentioned in the publication, which may benefit from any price movements resulting from the publication: LVMH.
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