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Marc Jacobs Looks to Follow Kors, Go Public

Designer is leaving Louis Vuitton to focus on personal brand


Superstar fashion designer Marc Jacobs says he is leaving Louis Vuitton Moet Hennessy (LVMUY), according to a report in The Wall Street Journal.

The reason: Jacobs wants to instead build his own label and perhaps take it public.

Weak Holiday Sales Don’t Necessarily Mean Weak Consumers
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For the past 16 years, Jacobs has been the creative designer at LVMH, but Nicolas Ghesquiere — a former designer at Balenciaga — could be on tap to replace him. Jacobs was responsible for collaborations with Stephen Sprouse, Takashi Murakami, Richard Prince and even Kanye West during his tenure. He was also a genius when it comes to over-the-top runway events.

At the same time, he turned his own brands, which include “Marc Jacobs” and “Marc by Marc Jacobs” into a $679 million business. In fact, the two brands are among LVMH’s most profitable.

With that in mind, a Marc Jacobs IPO certainly has a good chance of success. Heck, look at the offering from Michael Kors (KORS) — a designer who also used to work for Louis Vuitton. Since KORS hit the markets in December of 2011, the stock has skyrocketed from $20 per share to over $75 — a gain of 280%. As a result, the company’s market capitalization is now north of $15 billion.

Can you blame Marc Jacobs for wanting to get a piece of the action?

Of course, don’t not shed too many tears for LVMH either, as the fashion powerhouse owns about a third of the Jacobs operation.

And don’t get too excited about the IPO just yet. It appears the offering won’t happen for another three years or so.

Luckily, there will probably be other luxury apparel offerings to whet investor appetites in the meantime. After all, luxury apparel brand Vince recently filed for an IPO. The company plans to list on the NYSE under the ticker of “VNCE” and the lead underwriters include Goldman Sachs (GS) and Baird.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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