LVMH weighs sale of Marc Jacobs amid financial strains
French multinational company operating in the premium and luxury goods segment LVMH is looking to sell underperforming labels such as Marc Jacobs to sharpen its portfolio.
Sales struggles mirror rivals
In the second quarter, LVMH sales in Fashion & Leather Goods fell 9% to €9 billion, dragging group-wide organic revenue down 4%. Operating profit dropped 15% to €9.01 billion.“This confirms a cooling luxury cycle, especially in handbags and accessories,” said Jean-Luc Martin, an equity analyst at Société Générale. “Consumers in China and Europe are becoming more selective, which is hitting even the strongest brands.”
Still, others see opportunity. “The selloff in luxury has been overdone,” argued Maria Gonzalez, portfolio manager at Global Asset Partners. “LVMH trades at a discount to Hermès despite having unmatched scale and brand depth. For long-term investors, this is an attractive entry point.”
Strategic realignment under Arnault
In response, Chairman Bernard Arnault has also sought to mitigate trade risks by lobbying for favorable deals and greenlighting a new production facility in Texas. “The U.S. market is critical for LVMH, and Arnault is signaling long-term commitment,” said Emily Carter, a London-based luxury strategist. “By diversifying production and focusing on core brands, the group is positioning itself to weather near-term volatility.”Despite short-term obstacles, LVMH’s rebound suggests investors are betting on its resilience. If demand stabilizes and strategic adjustments pay off, Europe’s largest luxury conglomerate may be positioned to outpace peers in the next recovery phase.Capitalizing on new opportunities
LVMH is likewise harnessing artificial intelligence to bolster operations from supply chain to design. Its internal AI platform, MaIA, now processes over 2 million monthly requests—from predictive pricing to personalized customer interactions—amid efforts to preserve "luxury values while enhancing efficiency." And it’s deepening its cultural engagement in Japan through flagship expansions and heritage brand activations, aiming to anchor itself in a more stable domestic market audience.Previously, we reported that LVMH stock dropped below €519 despite tourism rebound lifting high-end consumption. This happened just days after HSBC called on luxury rebound.
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