LVMH has agreed to sell the Marc Jacobs fashion label to a joint venture between WHP Global and G-III Apparel Group in a deal valued at up to $850 million, as the French luxury group accelerates efforts to streamline its portfolio during a prolonged slowdown in luxury spending.

The transaction, announced on Thursday, will give WHP and G-III equal ownership of Marc Jacobs’ intellectual property, with each company contributing up to $425 million, according to regulatory filings. The deal is expected to complete before the end of 2026, while designer Marc Jacobs will remain creative director of the brand he founded in 1984.

LVMH bought a majority stake in Marc Jacobs in 1997, the same year Jacobs became the first creative director of Louis Vuitton. During his tenure, he introduced ready-to-wear collections and artist collaborations that helped reshape luxury fashion marketing and expand Louis Vuitton’s global appeal.

The disposal marks the latest step in a broader retreat from smaller and less profitable brands by the Paris-listed group. The Financial Times reported that LVMH has spent the past 18 months shifting from acquisitions to disposals, including the sale of Off-White, its stake in Stella McCartney and parts of its travel retail operations in China, as the company concentrates on larger labels such as Louis Vuitton, Dior and Tiffany.

Bernard Arnault, chairman and chief executive of LVMH, said Marc Jacobs was “a designer of rare creativity and unique vision” and added that he was “confident that this new chapter will offer new avenues of opportunity for Marc Jacobs”.

Marc Jacobs said in a statement that he was “forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years” and that he remained committed to his role as creative director.

WHP Global said the acquisition would lift its global retail sales above $9.5 billion and strengthen a fashion portfolio that already includes Vera Wang, rag & bone and G-Star. Under the agreement, G-III Apparel Group will operate Marc Jacobs’ direct-to-consumer and wholesale businesses globally, while WHP will oversee licensing arrangements.

Retail Gazette reported that LVMH said conflict in the Middle East had reduced quarterly sales by at least 1 per cent because of weaker Gulf spending and lower tourism in Europe, adding pressure on luxury demand.

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