Louis Vuitton owner LVMH has confirmed the departure of the American designer, who will be leaving the French fashion label to focus on his own brand.

LVMH chairman and CEO Bernard Arnault and Marc Jacobs have announced the designer’s departure from Louis Vuitton on the final morning of this season’s Paris Fashion Week.

Jacobs’s contract is set to run out in 2014, and the 50-year-old designer, who has been with the brand since 1997, will not be renewing it, according to a report published Wednesday by WWD.

It is thought that he will focus, along with business partner Robert Duffy, on an IPO for his own multi-million dollar Marc Jacobs brand, which should occur within the next three years.

Nicolas Ghesquière has been touted as the US designer’s replacement. The former Balenciaga creative director left that label after 15 years last November (later replaced by Alexander Wang).