G‑III closes $500M Marc Jacobs deal

G-III Apparel Group and WHP Global completed their acquisition of the Marc Jacobs brand from LVMH on September 1, ending a deal announced in May and putting the label under a new joint-ownership structure. G-III said it invested about $500 million, funded with cash on hand and borrowings under its revolving credit facility. The New York company disclosed the closing as it reported second-quarter fiscal 2027 results on September 2 and raised earnings guidance excluding Marc Jacobs. ### How is the Marc Jacobs business now split up? The September 1 closing created a 50-50 joint venture between WHP Global and G-III to own Marc Jacobs intellectual property, according to the companies. WHP will lead the joint venture’s global brand licensing, while G-III will own and run the operating business, including wholesale, retail and e-commerce, and provide support services to the venture. (ir.giii.com) Marc Jacobs will remain founder and creative director, the companies said. In the original May 14 announcement, LVMH said G-III would acquire and operate parts of the brand’s global direct-to-consumer and wholesale businesses alongside WHP’s ownership platform. ### Why was this transaction notable for LVMH and G-III? LVMH said on May 14 that it had owned a majority stake in Marc Jacobs since 1997 and had helped build the brand’s global presence across handbags, ready-to-wear, footwear, eyewear and fragrance. (ir.giii.com) Bernard Arnault, LVMH’s chairman and chief executive, said at the time that Marc Jacobs had contributed to the success of both the maison and the group over three decades. Morris Goldfarb, G-III’s chairman and chief executive, said on September 2 that adding Marc Jacobs was a “meaningful step forward” in the company’s strategic transformation. Yehuda Shmidman, WHP Global’s founder, chairman and chief executive, said the partners had created a platform combining brand management and operating expertise. ### What did G-III report alongside the closing? (lvmh.com) G-III reported second-quarter net sales of $554.1 million for the period ended July 31, down 10% from $613.3 million a year earlier. Net income rose to $20.2 million, or $0.46 per diluted share, from $10.9 million, or $0.25 per diluted share, while gross margin increased to 45.2% from 40.8%. (ir.giii.com) Morris Goldfarb said the quarter’s earnings beat guidance because of “substantial gross margin expansion,” and G-III said the improvement reflected price increases and a mix shift toward higher-margin owned brands. The company also said its go-forward portfolio sales rose at a high-single-digit rate during the quarter. (marketscreener.com) ### Did the deal change G-III’s outlook? G-III said on September 2 that it raised GAAP and non-GAAP net income guidance for fiscal 2027, excluding Marc Jacobs. The company also said it is targeting $1 billion in long-term annual revenue from the Marc Jacobs business. The May 14 filing said G-III would fund its approximately $500 million investment with cash and revolving-credit borrowings, underscoring that the acquisition was structured as both a brand-ownership and operating-business transaction. (marketscreener.com) That structure leaves licensing with the WHP-G-III venture and day-to-day commercial operations with G-III. ### What comes next under the new ownership? G-III’s investor relations site lists its second-quarter fiscal 2027 earnings webcast for September 2 at 8:30 a.m. (marketscreener.com) EDT, where executives are expected to discuss the quarter and the Marc Jacobs closing. The companies have already said WHP will handle global licensing, G-III will run wholesale, retail and e-commerce, and Marc Jacobs will continue overseeing the brand’s creative direction. (ir.g-iii.com) (sec.gov)