Luxury goods giant LVMH on Monday appointed a new head for its US fashion house Donna Karan International and said the brand will be profitable this year despite the difficult economic environment.

It named US fashion unit boss Fred Wilson as Donna Karan International's new operational chief and said current boss Guiseppe Brusone will stay on as chairman. The management reshuffle is effective immediately.

Donna Karan said: "I have not only greatly enjoyed a personal relationship with Pino Brusone but also his professional commitment and respect for the brand and its products. I look forward to his continuing guidance as chairman of the board.

"It's with great pleasure that I welcome Fred Wilson to Donna Karan. I have witnessed and respected his work as president of the LVMH Fashion Group America's, and the relationship he has built with people in addition to his excellent reputation. I am very excited to collaborate with him to realise the company's vision."

LVMH bought Donna Karan International for $643 million late last year.