Lvmh sold the Donna Karan fashion brand to G-III Apparel. The French giant collected 650 million dollars from the operation, equal to 592 million euros.
The US group that won the new brand already owns Calvin Klein and Tommy Hilfiger and last year launched the Karl Lagerfeld brand in the United States.
The news made Lvmh shares soar on the Paris Stock Exchange (+5,5%) which will publish the half-yearly on Tuesday.
According to analysts, the sale is valued at between 1 and 1,5 times the estimated annual turnover of between 450 and 500 million dollars. The Donna Karan brand and its sister brand DNKY are going through a waning phase with respect to the successes of the past and with respect to a market where the stars are, in the USA, Michael Kors, Tory Burch and Alexander Wang.
