Kering accelerates expansion strategies

The challenges faced by the Kering group in recent months seem to have prompted its leaders to intensify efforts in acquiring new brands and deploying strategies to strengthen the image and desirability of its labels. New operations aimed at improving financial flexibility are also on the table.

An agreement reached last July between Kering and the Qatari holding company Mayhoola regarding the acquisition of 30% of the Valentino brand for €1.7 billion already included the option to purchase the remaining shares of the iconic Italian fashion house by 2028.

After Valentino, Kering is now focusing its interest on the Balmain brand, with the prospect that Mayhoola, which acquired Balmain in 2016 for around €485 million, may become an associate partner within the group led by Henri-François Pinault.

Meanwhile, the French luxury giant has just issued a bond of €1.75 billion, equivalent to about one-tenth of its turnover. This issuance is divided into two tranches, the first of €1 billion and the other of €750 million, with respective maturities set at 8 and 12 years. This operation strengthens Kering's financial flexibility at a key moment in its internal restructuring, aimed at overcoming the mixed performances of some of its iconic brands, notably Gucci. This financial move has been well received by investors, reflecting solid confidence in the direction taken by Kering, which closed the year with a turnover of over €19.5 billion and a net profit of €2.98 billion. Despite a 6% decline in sales in the last quarter, mainly due to Gucci, whose sales fell to €9.87 billion.

François-Henri Pinault's optimism remains unwavering. He still relies on "the solid foundations and historical weight of its houses," especially on the Asian market, which has shown an ability to generate strong performances even in times of crisis.