Luxury giant LVMH Group wants to sell DKNY to buy Hermes?

It has been rumored that the LVMH Group, renowned for its luxury brands, is considering selling Donna Karan DKNY. While the company is busy expanding its acquisitions, DKNY seems to be the one being put on the chopping block to save resources.

DKNY

To uphold its high-end luxury image, LVMH has struggled with DKNY’s more casual street-style appeal, which hasn’t quite aligned with their ambitions to dominate the global luxury market. Back in 1996, Donna Karan International went public in the U.S., catching LVMH's attention. By 2001, they had acquired Donna Karan International. Over time, the Donna Karan Collection was placed up for sale. While there's no official confirmation yet, Donna Karan herself hinted at the brand's role on her personal website, stating, "DKNY is the pizza to Collection’s caviar." Though DKNY holds a special place in New York, it hasn't managed to secure a strong foothold in the international luxury market.

DKNY

What’s DKNY worth?

According to investment experts, LVMH could potentially fetch hundreds of millions of dollars from this deal. Some speculate that another business might take over the brand, or perhaps Donna Karan herself could buy it back. However, even if she does, can she handle the price tag LVMH has set?

Is Moët Hennessy next?

European private equity firms have also mentioned that LVMH’s Moët Hennessy division might be up for grabs. Reason one: In the first half of 2009, sales in the wine and spirits segment dropped by 17%. Reason two: Selling off DKNY and Moët Hennessy would provide the CEO, Bernard Arnault, with enough capital to pursue larger opportunities, like acquiring Hermes.

This ongoing situation within LVMH raises questions about the future direction of these iconic brands. Will DKNY and Moët Hennessy continue to thrive under new ownership, or will they fade into obscurity?