In a strange twist of fate, LVMH Moët Hennessy Louis Vuitton has agreed to sell Donna Karan International, the parent company of Donna Karan and DKNY, to G-III Apparel Group for $650 million.
G-III investors weren’t pleased with the news: its stock (GIII) dropped by as much as 6 percent in early trading Monday, while LVMH shares inched up by more than 1 percent in Paris.
The French luxury giant, which bought the business in 2001 for $643 million, tried repeatedly to revive the Donna Karan and DKNY lines in recent years, dropping offshoots DK Jeans and DKNYC in an effort to focus on core collections. Last summer, Donna Karan herself left the company and her eponymous line was put on hold.
Read more at Sourcing Journal.