Donna Karan, DKNY labels sold to Calvin Klein owner after sales disappoint
French giant LVMH gives up on label that once defined workplace attire but which has languished since its eponymous founder stepped down as chief designer to work on new projects
LVMH has sold Donna Karan International to G-III Apparel Group for US$650 million, a rare disposal for the French luxury-goods maker, which failed to turn around a label that once defined workplace attire for successful women.
The sale reflects LVMH’s inability to generate profitable growth from the business, which has counted Hillary Clinton and Michelle Obama among its fans. Co-founder Donna Karan transformed professional women’s wardrobes in the 1980s and ’90s with her design philosophy of “seven easy pieces” that could be mixed and matched, but the spread of casual workplace dressing has proved a challenge.
“When G-III approached us about acquiring the brand, we concluded that the time was right,” Toni Belloni, managing director of LVMH, said.
G-III makes dresses, suits and sportswear under brands such as Calvin Klein and Vince Camuto. G-III will gain the Donna Karan and DKNY brands, the companies said.
Selling DKNY is a way to get rid of a problem at a time when the market is tough
LVMH shelved the Donna Karan line after its founder departed last year, with plans to focus on the DKNY brand, the New York Post reported on July 20. It also said that the company had decided to sell both brands after seven months of “disappointing performance” under new designers Maxwell Osborne and Dao-Yi Chow.