By Kenneth Richard | The Impressionist
The fashion world has speculated changes at Marc Jacobs International since his departure from Louis Vuitton in October 2013 to focus fully on his own house. Today sources have confirmed that Marc by Marc Jacobs will be shuttered and absorbed into the primary Marc Jacobs line.
Marc Jacobs International, the operating company which is estimated to generate sales of around 500 million dollars, is owned by LVMH while the trademark ownership is split equally between LVMH, Jacobs, and Jacobs’ partner, Robert Duffy.
Industry observers suggest the move to consolidate is a step toward preparing to take the company public. Those same observers have suggested LVMH and Jacobs have been encouraged by the success of Michael Kors Holdings Ltd. as a public company. Kors shares have tripled since the company priced them at $20 in its IPO in late 2011. As of today Michael Kors is operating at a $13.41 billon market cap, trading at ~$67 per share and has been a continual ‘top-pick’ stock in the space.
Marc by Marc Jacobs is designed by creative director Katie Hillier and women’s design director Luella Bartley, who were both appointed in May 2013 and have taken the runway bow together since then. While their role at the company remains unclear, they are well regarded within the company as well as the industry.
According to sources, the move will unify all products into an expanded Marc Jacobs line with a broader range of assortment and prices. Similar moves happened at Dolce & Gabbana when they folded D&G and are expected at Kate Spade, where they recently folded Saturday by Kate Spade into the Kate Spade line.
The Impression understands that in order to move forward brands often need to take a step that appears to be back. And it is, back to being focused on going forward. We wish Marc and all involved much success in that endeavor.