Donna Karan to Step Down as Chief Designer

DKNY is losing the DK.

Donna Karan, one of the most influential shapers of contemporary American fashion, will step down as chief designer of her namesake company Donna Karan International to devote more time to her foundation.

In a statement, Ms. Karan said she has contemplated the decision for several years and "after much soul-searching" with LVMH Moë t Hennessy Louis Vuitton, which acquired the label in 2001, decided now was the right time.

With the move, Donna Karan International is steering away from high-end fashion and toward its more mass-market DKNY brand. The company said it won't seek a replacement chief designer for the Donna Karan Collection and will suspend runway shows and collections for a period of time. Meanwhile, it said, it will "substantially increase its focus on the DKNY brand."

Ms. Karan opened her fashion house in the mid-1980s with her late husband, Stephen Weiss. Her clothes were a hit among executive women and celebrities such as Demi Moore who took to her "seven easy pieces" formula based on several items that could easily be mixed and matched.

She launched DKNY in 1989 to appeal to a younger audience, and it quickly gained a following with stylish urbanites.

In 1996, Ms. Karan took her company public. But her fashions started to lose their appeal, and she sold the company to LVMH, retaining a high degree of creative control.

The shift to emphasizing more affordable gear is a turnabout for LVMH, which worried when it bought Donna Karan International that the presence of DKNY in discount stores like TJ Maxx cheapened the brand and made it hard to command the attention of luxury retailers like Neiman Marcus.

The purchase at the time was a major bet by LVMH on an American designer label and ready-to-wear apparel.

Ms. Karan will stay on with the company as an adviser.

Write to Kate Linebaugh at [e-mail] and Suzanne Kapner at [e-mail]

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