G-III Apparel (GIII) to add Donna Karan & DKNY to its portfolio

• For only the second time in its almost 30-year history, LVMH Moët Hennessy Louis Vuitton, the largest luxury conglomerate in the world, is selling a fashion brand.  The last fashion brand that LVMH sold was Christian Lacroix in 2005.
• G-III Apparel Group, the American manufacturing and licensing company owns Andrew Marc, Vilebrequin and Bass and holds the licenses for Ivanka Trump, Calvin Klein and Tommy Hilfiger, among others. 

LVMH Moët Hennessy Louis Vuitton SE agreed to sell Donna Karan International Inc. to apparel company G-III Apparel Group Ltd. for $650 million including debt, an unusual retreat for the French luxury giant.

The Donna Karan and DKNY lines delivered lackluster growth for years amid stiff competition and capped investment from LVMH, which focused more on its eponymous brand, Céline and other labels it saw as being higher potential.

About two years ago LVMH decided to restructure Donna Karan, cutting costs and simplifying the branding. During its latest effort at the end 2015, the French company pulled lines like DK Jeans and DKNYC in a bid to focus on the brand’s core collections. The Donna Karan line has remained suspended since last summer when the brand’s eponymous founder resigned.

Donna Karan with models wearing looks from her DKNY Spring 1989 collection in Times Square.