LVMH reportedly eyes selling Marc Jacobs, Fenty Beauty

French luxury giant LVMH is reportedly considering selling some of its fashion, beauty, and spirits brands, including Marc Jacobs and Fenty Beauty. This would mark one of the biggest downsizing moves in the group's nearly 40-year history. 

LVMH owns more than 75 brands across fashion, beauty, wines and spirits, hospitality, and media. But as the luxury industry faces a difficult downturn, a potential sale of some of these brands, according to the Financial Times, would be one of the largest and most significant portfolio changes in the company's history, allowing it to focus more on its core businesses.

According to the report, Moët Hennessy, LVMH's worst-performing division, is in talks with potential buyers about selling assets such as the Eminente rum brand and the Joseph Phelps vineyard in California. LVMH is also considering selling the beauty brands Make Up For Ever and Fresh, as well as its 50% stake in Fenty Beauty, which JPMorgan estimates is worth between US$1.7 billion and US$2.7 billion. These moves would help the group focus more on Dior Beauty and Guerlain.

According to the report, LVMH held detailed talks with Authentic Brands Group about selling the designer brand Marc Jacobs for around US$1.1 billion, but the deal ultimately fell through. These potential sales could bring LVMH a total of several billion US dollars, which could then be reinvested into its core businesses.

The sale of French daily newspaper Le Parisien is also being considered, but the Arnault family is divided, according to the report. Two of LVMH chairman and CEO Bernard Arnault's sons proposed selling the newspaper to conservative billionaire Vincent Bolloré, while his eldest daughter and son warned that doing so just before the French election could cause political controversy.

MARKETING-INTERACTIVE has reached out to LVMH for a statement.

Don’t miss: LVMH sells DFS HK and Macau business to China’s CTG Duty-Free

In fact, over the past 18 months, LVMH has sold several assets, including the streetwear brand Off-White, about 49% of its stake in Stella McCartney, and its DFS duty-free business in Hong Kong, Macau, and greater China, along with related intangible assets to Beijing based CTG Duty-Free.

Through this transaction, CTG Duty-Free will acquire the DFS retail stores in Hong Kong and Macau as well as intangible assets encompassing a series of DFS brands and intellectual properties for exclusive use in Greater China. 

Meanwhile, the group has made over 200 acquisitions since 2000, including the purchase of Tiffany & Co. for about US$16 billion in 2020 and the acquisition of jewelry brand Bvlgari for around US$4 billion in 2011.

Mark your calendars for 24 June! #Content360 Hong Kong returns with a dynamic, one-day event dedicated to pivotal trends—from the silver economies to breakthrough IP collaborations, sports, and beyond. Let's dive into the art of curating content with creativity, critical thinking and confidence!

Related articles:

LVMH sells DFS HK and Macau business to China’s CTG Duty-Free
LVMH to launch major stores in Beijing
LVMH's brand sentiments spike following sponsorship of the Olympics