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What LVMH’s sale of DKNY tells you about the luxury market

LVMH is selling off Donna Karan International, the owner of DKNY, to G-III Apparel Group in a deal that is valuing the troubled brand for $650 million. 

It’s not entirely a surprise: Donna Karan had been losing money for years, operating in a tough business environment. Luxury analysts say DKNY’s annual sales (LVMH does not break out individual company performance) came in at about $450 million. So G-III is paying about $1 to $1.5 times annual revenue, less than the 1.9 times LVMH paid when it bought the company in 2001 for $643 million.)

Read the rest of this story on Glossy.co

 

 

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