LVMH Moët Hennessy Louis Vuitton has agreed to divest the fashion label Marc Jacobs to New York-based brand manager WHP, signaling the luxury giant's strategic pivot toward streamlining its portfolio amid a prolonged downturn in high-end consumer spending. This move is part of a broader strategy by the Paris-listed group to offload smaller, underperforming assets and concentrate resources on core profit drivers such as Louis Vuitton and Dior.

While no financial terms were disclosed for the transaction, sources previously indicated LVMH sought a valuation near $1 billion for the brand, which achieved peak relevance in the early 2000s. Marc Jacobs, the eponymous founder and former creative director at Louis Vuitton, will maintain his position as designer. This sale follows a trend of divestitures over the last 18 months, including Off-White and its stake in Stella McCartney.

WHP, which already manages premium brands like Vera Wang and rag & bone, stated that integrating Marc Jacobs will elevate its global retail sales to over $9.5 billion. WHP will operate the brand in collaboration with G-III Apparel Group. Both Bernard Arnault and Marc Jacobs expressed confidence in this "new chapter" for the label, which LVMH initially invested in back in 1997.