- Angela Gonzalez-Rodriguez |
In a call with analysts to discuss second-quarter and first-half results, LVMH said its Donna Karan and Marc Jacobs brands were being restructured under new management teams and that Marc Jacobs was suffering from wholesalers' "wait-and-see attitude".
"We are in the eye of the hurricane," LVMH’s Finance Director Jean-Jacques Guiony said about Marc Jacobs, explaining that the brand was undergoing profound changes, from prices to product lines and presentation.
The company led by ex-Louis Vuitton designer Marc Jacobs is aiming to float on the New York stock exchange in the next few years.
In March, Marc by Marc Jacobs, the youngest and affordable second line of the eponymous designer, closed. As explained back then by LVMH – which holds the 90 percent of the company’s ownership – in order to standardise the look of the brand, its products will be integrated into the main collection of the company.
"We have plenty of opportunities to operate and open more stores, but I think first and foremost the most important thing is finding the right product concept and unified under a concept store," explained Sebastian Suhl, who debut as CEO.
The new management of the company believes that the second collection does not have any connection with the principal and there is no reason to defend it. The new CEO also aims to expand the range of product, especially in handbags and shoes, which shows it still has not exploded.
The capital of the company is currently owned by LVMH, which controls 90 percent stake, and the two drivers of the company, the designer Marc Jacobs and Robert Duffy, who hold the remaining 10 percent of shares equally. At the time of the announcement, the chairman of LVMH, Bernard Arnault said the restructuring of Marc Jacobs would take two to three years.