The noted brand was long considered unprofitable
LVMH has sold the Donna Karan International brand to G-III for $650 million, after several years of reported losses.
G-III’s fashion licenses include Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Ivanka Trump, and Dockers. It also owns Vilebrequin, Andrew Marc, Marc New York, and Bass.
It is considered rare for LVMH to unload a member of its stable of brands, but Donna Karan was long considered unprofitable. The transaction is expected to close in late 2016 or early 2017.
“Donna Karan International is an iconic global fashion company,” said Morris Goldfarb, chairman, CEO, and president of G-III, in a statement. “Its lifestyle aesthetic resonates well with consumers throughout the world. We are excited to build upon its strong foundation as we seek to capitalize on a significant market opportunity.”
(Image courtesy of G-III)