NEW YORK CITY, New York: Marc Jacobs, once a crown jewel in LVMH's fashion portfolio, may soon find a new home. The French luxury conglomerate is in advanced talks to sell the American label, according to sources familiar with the matter.

The discussions are ongoing with several potential buyers, including Authentic Brands Group, owner of Reebok, and brand management firm WHP Global. Both declined to comment or did not immediately respond. Bluestar Alliance, which owns Brookstone and recently acquired Off-White from LVMH, is also reportedly in the running. A deal could value Marc Jacobs at around US$1 billion, according to the Wall Street Journal, which first reported the development.

LVMH, Marc Jacobs, and Bluestar Alliance have not responded to requests for comment. In 2024, Bloomberg reported that LVMH was evaluating strategic options for the brand, though LVMH denied the claim at the time.

Founded in 1984 by designer Marc Jacobs, the brand is known for its eclectic, irreverent aesthetic that blends luxury with streetwear. LVMH acquired a stake in the label after naming Jacobs the creative director of Louis Vuitton in 1997, a post he held until 2013.

The potential sale reflects a broader portfolio reshaping by LVMH. Last year, it sold streetwear label Off-White to Bluestar Alliance, and earlier this year, designer Stella McCartney repurchased LVMH's minority stake in her eponymous label. While McCartney will continue advising LVMH on sustainability, the move marked another step away from the group's diversification strategy in fashion.

A sale of Marc Jacobs would mark a significant shift for LVMH, which is navigating a softer luxury market and intensifying global competition. The company's second-quarter earnings came in slightly below expectations, though executives noted signs of recovery in the Chinese market, a critical growth engine.

Analysts say LVMH appears focused on its core powerhouses, Louis Vuitton, Dior, and Tiffany & Co., and may be trimming niche or underperforming assets to tighten focus and unlock capital.

If finalized, the Marc Jacobs sale would follow a string of high-profile deals reshaping the luxury sector, including Prada's $1.4 billion acquisition of Versace from Capri Holdings earlier this year.