• by Sarah Mahoney , July 28, 2025

Demand for Louis Vuitton has weakened.

As luxury consumers continue to pull back on spending, LVMH is reportedly looking to sell off Marc Jacobs, with the Wall Street Journal pegging the potential price tag at $1 billion.

The news comes just as the company, a bellwether in the luxury sector and owner of Christian Dior, Louis Vuitton and Tiffany, reported first-half revenue declines. Overall sales fell 4%, with fashion and leather goods -- the company’s largest division -- down 7%, largely due to weaker tourism in Asia. Despite describing results as demonstrating “solidity,” LVMH posted a 22% drop in operating profits.

Rumors of a Marc Jacobs divestiture have been reported before. But the new WSJ report says LVMH is now in talks with Authentic Brands Group, which owns Reebok, Brooks Brothers and Forever 21. Other bidders said to be in the mix are Bluestar Alliance (Tahari, Off-White) and WHP Global (Vera Wang, Anne Klein, Isaac Mizrahi): brand management companies known for reviving faded fashion names.

LVMH has also made other changes in the fashion lineup, recently appointing Jonathan Anderson as the sole creative director at Christian Dior.

Meanwhile, Bain & Company, in partnership with Italian luxury trade group Altagamma, warns that turbulence may be the new norm for high-end brands. “The global luxury sector this year confronts its most far-reaching disruptions—and its biggest potential setbacks for at least 15 years,” the firm writes in its latest report on the sector, citing economic volatility, geopolitical unrest, and shifting cultural expectations.

More concerning is Gen Z’s growing disillusionment. Bain notes that many younger consumers are reassessing the price-to-value equation, potentially undermining long-held assumptions about brand equity and premium pricing.

For luxury marketers, that signals a more urgent need to prove relevance—before Gen Z walks away entirely.