Star Designer Marc Jacobs Leaves Louis Vuitton

02 Oct, 2013

Marc Jacobs, the star designer who turned Louis Vuitton from a staid luggage-maker into one of the world’s biggest luxury brands, is leaving to focus on floating his own label,  French company’s parent LVMH said on Wednesday.

The move follows a series of leadership changes at Louis Vuitton, LVMH’s biggest profit- and revenue-contributor, aimed at helping the brand regain some of its lost prestige after a decline in sales growth over the past year.

LVMH and Marc Jacobs declined to comment, but the source said the designer aims to float his business – which is estimated to generate sales of around 500 million euros – in an initial public offering.

Some industry observers have suggested Jacobs has been encouraged by the success of Michael Kors, the U.S. brand whose shares and sales have been enjoying stellar growth since its IPO late last year.

LVMH owns nearly all of Marc Jacobs International, the operating company, while the trademark ownership is split equally between LVMH, Jacobs and Jacobs’ partner Robert Duffy.

Reuters

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