LVMH Sells Donna Karan Brand To US Group G-III Apparel

LVMH Moet Hennessy Louis Vuitton, the popular French luxury company, is selling its Donna Karan and DKNY clothing brands to U.S. group G-III Apparel in a $650 million deal, the company announced on Monday.

Louis Vuitton Owner LVMH Sells Donna Karan Brand To US Group

G-III Apparel will obtain Donna Karan International, Inc., in late 2016 or early 2017.

New-York based G-III makes dresses, suits and sportswear under brands such as Bass shoes, Vilebrequin, Calvin Klein and Vince Camuto. The company is looking to expand its brands, and will fund the purchase with loans, according to a statement from LVMH.

“When G-III approached us about acquiring the brand, we concluded that the time was right,” Toni Belloni, managing director of LVMH, said in a statement.

LVMH shelved the Donna Karan line after Donna Karan herself stepped down from the collection last year, to focus on her Urban Zen company and foundation.

LVMH had reportedly decided to sell both brands after seven months of “disappointing performance” under new designers Maxwell Osborne and Dao-Yi Chow.

G-III said it expects their new acquisition to profit in the fiscal year through January 2018, and increase earnings from then on.