LVMH Sells Marc Jacobs to WHP Global

LVMH, the French luxury giant, is selling its Marc Jacobs brand to US brand firm WSP Global. The transaction is expected to be finalized by the end of the year, pending regulatory approvals. Following the sale, G-III Apparel Group will purchase and co-own part of the Marc Jacobs brand alongside WSP Global, forming an equally owned joint venture. G-III Apparel Group's investment is estimated at $500 million, and it will operate Marc Jacobs' direct-to-consumer and wholesale businesses. Marc Jacobs will remain as the creative director. The Marc Jacobs brand, acquired by LVMH in 1997, had experienced a decline in popularity but has recently returned to profitability. The Wall Street Journal previously reported the potential sale at a valuation of $1 billion. LVMH has recently reported a drop in net profit and revenue, making this divestiture a strategic move.