During LVMH’s annual meeting in April 2014, chief executive
Bernard Arnaultsaid the Marc Jacobs business was generating a billion dollars a year in retail revenue, thought to include royalties from its partnership with Coty, which manufactures and distributes Marc Jacobs fragrances.
However, Marc Jacobs’ consolidated retail revenues, not including fragrance, have more than halved in the past three-to-four years, dropping from around $650 million to about $300 million, according to a source familiar with the business. (Industry analysts have also published similar estimates.)
A significant proportion — from a quarter to a third — of Marc Jacobs' retail sales are generated by outlets, where the brand’s clothing and accessories are sold at a discount.
The drop in revenue can be traced to 2015, when LVMH announced its decision to unify Marc by Marc Jacobs and the main collection under a single brand umbrella, with British designer Luella Bartley and (accessories guru)
Katie Hillier — who were hired in 2013 to craft a refreshed identity and product offering for the company's second line — leaving their posts. (Hillier continued to consult on accessories.)