LVMH May Sell Marc Jacobs and Rihanna's Fenty Beauty Stake Amid Luxury Slowdown

LVMH is exploring asset sales including Marc Jacobs and Rihanna's Fenty Beauty stake as the luxury slowdown pressures Bernard Arnault's empire. The Silicon Review reports on the rare retrenchment across fashion, beauty, wine, and spirits from the world's biggest luxury group.

LVMH Moët Hennessy Louis Vuitton, the world's largest luxury conglomerate, is considering a series of asset sales that could include the Marc Jacobs fashion house and a significant portion of its stake in Rihanna's Fenty Beauty, according to sources familiar with the matter. The rare retrenchment comes as the luxury slowdown of 2026 continues to squeeze even the most resilient players in the sector, with softening demand in the United States and Europe following years of post-pandemic excess. Bernard Arnault, Europe's richest man and LVMH's chairman, has historically been a buyer of brands, not a seller, making the potential divestitures a notable strategic pivot.

Marc Jacobs, acquired by LVMH in 1997, has long been a cult favorite but has struggled to match the growth trajectory of category leaders like Dior and Louis Vuitton. Fenty Beauty, launched in 2017 with Rihanna in a 50-50 joint venture, disrupted the cosmetics industry with its 40-shade foundation range but has faced intensified competition from Selena Gomez's Rare Beauty and Lady Gaga's Haus Labs in recent quarters.

Why is LVMH selling brands now? The answer lies in the luxury slowdown of 2026, which has seen LVMH's fashion and leather goods division grow just 3 percent year-over-year compared to 15 percent in 2023. The group's wines and spirits segment, also named in the asset review, has fared worse with declining champagne shipments as younger drinkers pivot toward no-alcohol and low-alcohol alternatives. Selling non-core or underperforming assets would allow LVMH to consolidate capital behind its crown jewels: Louis Vuitton, Dior, and Tiffany & Co.

Marc Jacobs is a quintessentially American brand founded in New York City in 1984, and any sale would likely attract interest from U.S.-based holding companies such as Tapestry (owner of Coach and Kate Spade) or Capri Holdings (owner of Michael Kors and Versace). Fenty Beauty, co-owned by global superstar Rihanna  who is Barbadian-American and based primarily in Los Angeles and New York resonates deeply with U.S. consumers across Gen Z and millennial demographics. A stake sale could open the door for beauty giants like Coty or Estée Lauder to acquire a piece of the fast-growing brand.

The luxury slowdown has not spared even the strongest names. Kering, owner of Gucci and Balenciaga, issued its second profit warning of the year last month, while Hermès reported a deceleration in leather goods sales outside Asia. LVMH's exploration of asset sales signals a new phase of discipline after years of breakneck expansion. Other brands reportedly under review include certain wine estates in Bordeaux and Napa Valley, as well as DKNG, a small leather accessories brand acquired in 2022. No final decisions have been made, and LVMH may still choose to retain some or all of the brands if buyer offers fall short of expectations.

Industry analysts note that selling a stake rather than the entirety of Fenty Beauty would allow LVMH to retain upside if the brand rebounds while injecting fresh capital for acquisitions in faster-growing categories such as experiential luxury (hotels, cruises, private clubs). Rihanna's recent focus on her Savage X Fenty lingerie line and her acting career has meant fewer personal appearances at Fenty Beauty events, though the brand still generates an estimated $600 million in annual retail sales.

As LVMH considers selling Marc Jacobs and a stake in Rihanna's Fenty Beauty amid the deepening luxury slowdown of 2026, The Silicon Review reports that Bernard Arnault's rare retrenchment marks a strategic reset for the $400 billion conglomerate, with potential buyers circling two of fashion and beauty's most iconic American-born brands.