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Unlock the Editor\u2019s Digest for free<\/p>\n
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n LVMH is working on a sale of its Marc Jacobs fashion brand as the luxury goods giant contends with a slump in demand, according to people familiar with the matter.<\/p>\n The Paris-based conglomerate behind brands including Louis Vuitton, Dior and Mo\u00ebt Hennessy had approached potential buyers including Reebok owner Authentic Brands, about a sale of the fashion label, which it has owned since 1997, two people said. <\/p>\n The attempt to offload one of its smaller brands follows a rough stretch for LVMH, which is controlled by French billionaire Bernard Arnault. The group has seen its share price slump 19 per cent over the past year, driven by a downturn in the luxury goods sector.<\/p>\n LVMH and its competitors have been hurt by a combination of trade uncertainty affecting consumers around the world, weakening demand from Chinese shoppers and price rises that have turned away US customers.<\/p>\n The talks, first reported by The Wall Street Journal, were ongoing and there were no guarantees that a deal will be concluded, the people said. LVMH and Authentic Brands declined to comment.<\/p>\n On Thursday LVMH said its operating profit declined by 15 per cent to just over \u20ac9bn in the first half of the year, a slightly better performance than analysts had forecast. <\/p>\n LVMH\u2019s core fashion and leather goods business reported a steep decline in quarterly sales, highlighting continued weak demand for luxury goods after a period of price rises and heightened economic uncertainty.<\/p>\n On Thursday\u2019s earnings call, C\u00e9cile Cabanis, LVMH\u2019s finance chief, said the company, known as a serial acquirer, was open to selling brands that do not fit within its portfolio, citing the decision to offload stakes in the Off-White and Stella McCartney fashion labels last year.<\/p>\n \u201cWe will not keep brands if we believe they are not a good add-on, or we are not the right operator to operate them,\u201d said Cabanis. LVMH\u2019s last big deal was its $16.2bn acquisition of US jeweller Tiffany. <\/p>\n Founded in 1984 by Marc Jacobs, the eponymous brand is known for its designer handbags and upmarket accessories. Jacobs served as LVMH\u2019s creative director between 1997 and 2014. <\/p>\n During a slow period for deal activity, Italian fashion group Prada in April struck a $1.38bn deal to buy rival Versace from Capri Holdings, paying $200mn less than the price tag originally under discussion, the Financial Times previously reported.<\/p>\n","protected":false},"excerpt":{"rendered":" Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. LVMH is working on a sale of its Marc Jacobs fashion brand as the luxury goods giant contends with a slump in demand, according to people familiar with the matter. The Paris-based conglomerate behind brands<\/p>\n","protected":false},"author":1,"featured_media":12265,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[243,1886,5836,5835,3768,545],"class_list":{"0":"post-12264","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-brand","9":"tag-exploring","10":"tag-jacobs","11":"tag-lvmh","12":"tag-marc","13":"tag-sale"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/12264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12264"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/12264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/12265"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}