French luxury group LVMH (LVMH.PA) is selling Donna Karan International, the parent of New York label DKNY, to U.S. clothing firm G-III Apparel Group (GIII.O) in a deal valuing the loss-making fashion brand at $650 million.

The sale comes just over a year after a new design team had been put in place, showing how little patience LVMH has for underperforming businesses in the current tough trading environment.

Analysts estimate DKNY’s annual sales at $450 million to $500 million, meaning G-III would be paying 1-1.5 times annual revenue, less than the 1.9 times LVMH paid when it bought the brand in 2001.

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