Latest news with #Kering
Express Tribune
a day ago
- Business
- Express Tribune
Valentino refutes rumours of sale
Luxury group Kering's partner in Valentino was quick to rule out a newspaper report on Friday that the two were considering selling the Italian fashion label. But that could be just the move that incoming Kering CEO Luca de Meo needs to reset the debt-laden Gucci owner – even if it comes at a cost. Under current Chairman and CEO Francois-Henri Pinault, Kering bought a 30 per cent stake in Valentino for 1.7 billion euros in 2023 from Qatari fund Mayhoola to diversify away from slowing star brand Gucci, with a commitment to buy the rest by 2028. However, the deal includes options that could force Kering to buy the remaining 70 per cent as soon as May 2026, company filings show, potentially adding to Kering's 10-billion-euro-plus debt pile. In a note to clients this month, Bank of America analyst Mark Xu estimated the potential liability at 4-6 billion euros ($4.7-7.0 billion), depending on Valentino's performance. Revisiting the Valentino deal, which would require bringing Mayhoola back to the negotiating table, will be one of the first and biggest challenges for De Meo, industry experts and bankers say. The former Renault boss was picked in June to turn round the 24-billion-euro French luxury conglomerate. "With incoming CEO Luca de Meo joining in September 2025, not having to deal with the integration of Valentino may be one less thing on his already long to-do list," RBC analysts said on Friday. Contacted by Reuters about the report in Italian newspaper Corriere della Sera that Valentino could be put up for sale, Mayhoola CEO Rachid Mohamed Rachid said it was "untrue". Kering declined to comment. Kering shares rose 3.5 per cent after the report, outperforming the STOXX Europe 600 index, suggesting investors would welcome a sale. Besides Gucci, the group owns brands including Bottega Veneta and Yves Saint Laurent and high-end perfume label Creed, which Pinault bought in 2023 for 3.5 billion euros amid a wider acquisition spree. Reuters
Korea Herald
3 days ago
- Entertainment
- Korea Herald
How Lee Min-seo turned drum leather into award-winning jewelry
Hongik University's Lee Min-seo transforms discarded drum leather into wearable art, earning international recognition at the Kering Generation Award X Jewelry Lee Min-seo, a graduate student at Hongik University in Seoul, was named the first university category winner of the Kering Generation Award X Jewelry, a global competition that champions sustainability and innovation in design. The award, presented by French luxury group Kering — owner of brands such as Gucci, Saint Laurent and Boucheron— was announced during the JCK Las Vegas Show on June 7. Lee's winning jewelry collection, titled 'Rhythm Reborn,' reimagines discarded leather from the traditional Korean drum, janggu, into intricate and wearable pieces of art. 'Over 10 universities from around the world competed in the event,' Lee told The Korea Herald. 'Hongik University was the only one from Korea, and five students were selected to represent our department. I feel incredibly honored and grateful that my work was chosen.' Lee's collection explores the cultural and emotional resonance of the janggu, with a strong emphasis on rhythm and repetition. 'I used to play janggu in elementary school as part of a samulnori club, which is how I first learned that the drum's leather can wear out and tear,' she said. 'When I saw that the competition focused on sustainability and waste, I immediately thought about how meaningful it would be to give those discarded materials a second life.' Her design process was technically challenging, as animal hides like cow or sheep leather — commonly used in making janggu — are highly sensitive to moisture and temperature. 'I had to clean the leather thoroughly, which meant using water. Then I sliced it thinly, inserted it into metal frames, soaked it and bent it while wet. Once I applied heat, the shape would set. It was a way of using the material's vulnerability as a strength,' Lee said. The Kering Generation Award X Jewelry was launched this year in collaboration with the World Jewellery Confederation and Politecnico di Milano. It was designed to discover and support new talent in sustainable luxury design. The 2025 theme, 'Second Chance, First Choice,' encouraged participants to view discarded materials as valuable resources. 'I interpreted the theme as giving discarded materials a second life, then presenting them in a way that would make them worthy of being someone's first choice again,' Lee said. 'That's what I aimed to do with 'Rhythm Reborn'.' For Lee, tradition and sustainability are deeply connected — both conceptually and emotionally. 'Tradition is often seen as something from the past, but I believe it's something we can adapt and reinterpret,' she said. 'Design should not only be about making something beautiful — it should also carry meaning, responsibility and a story.' This philosophy extends to her broader approach to art jewelry, which she views as both wearable and collectible. 'One of my collectors told me they planned to display my piece on the wall like an artwork,' she said. 'That's what art jewelry is — it exists somewhere between fashion, memory and fine art.' Lee is currently a graduate student at Hongik University's Department of Metal Arts and Design. She credits her education for helping shape her artistic identity and visual language. 'My MFA thesis exhibition was a turning point,' she said. 'I created pieces using repeating comma-shaped units. It was exhausting but helped solidify who I am as an artist.' She recently curated an upcycling-themed exhibition in Seoul and is planning more solo exhibitions in the future. As for future collaborations, discussions are underway with several brands, though no details have been finalized. 'There are opportunities for mentoring and possibly working with a luxury jewelry brand, but nothing has been confirmed yet,' she said. 'Still, I'd love to explore that world. I usually work with larger metal pieces, so seeing how luxury brands approach things like fine jewelry would be a valuable experience.' Lee cites Boucheron and Japanese-born artist Junko Mori as ongoing inspirations. 'Junko Mori's dense, organic forms really resonate with me. I love repetition and detail, and her work reminds me of that,' she said. Ultimately, Lee hopes to be remembered as a designer with a clear voice. 'I like clarity,' she said. 'I want my work to be instantly recognizable — something that stays in people's hearts. Sustainability isn't just about protecting the environment. It's also about preserving memory.' yoohong@
Fashion Network
3 days ago
- Business
- Fashion Network
Mayhoola denies speculation of possible Valentino sale with Kering
Qatar-backed investment fund Mayhoola has denied a report published by Italian newspaper Corriere della Sera that it is considering selling Valentino, the Rome-based fashion house it co-owns with French luxury group Kering. 'This news is untrue,' Mayhoola chief executive Rachid Mohamed Rachid told Reuters on Friday, directly dismissing the report. Kering declined to comment. Kering, which owns Gucci and other luxury brands, acquired a 30% stake in Valentino in 2023 for $1.7 billion, with a commitment to purchase the remaining 70% by 2028. The deal was positioned as a strategic move to establish a second flagship brand rooted in couture. The timing of the acquisition, however, came just before the global luxury slowdown and has since become a topic of concern for investors. According to Kering's latest annual report, completing the Valentino acquisition could cost the group €4 billion ($4.64 billion), should Mayhoola choose to exercise its put options as early as 2026. Kering shares, which have dropped more than 60% in value over the last two years, initially climbed by 2.5% following the Corriere article but lost momentum after Mayhoola's denial. The speculation surrounding Valentino comes amid Kering's internal portfolio review, as the group faces mounting debt and industry-wide headwinds. Under pressure to free up capital, Kering has been evaluating its asset structure under the leadership of newly appointed CEO Luca de Meo, set to officially begin his role on September 15. Valentino itself has also been in the spotlight. Its CEO, Jacopo Venturini, was recently placed on medical leave, and its handbag division, Valentino Bags Lab Srl, was placed under court administration due to labor violations identified in its supply chain. In 2023, the company appointed Alessandro Michele as creative director, following the departure of long-time designer Pierpaolo Piccioli. That same year, the fashion house reported a 2% decline in revenue at constant exchange rates, totaling €1.31 billion ($1.52 billion). ($1 = €0.8607)
Reuters
3 days ago
- Business
- Reuters
For new Kering CEO, offloading Valentino would be tough but smart reset
PARIS/MILAN, July 18 (Reuters) - Luxury group Kering's partner in Valentino was quick to rule out a newspaper report on Friday that the two were considering selling the Italian fashion label. But that could be just the move that incoming Kering CEO Luca de Meo needs to reset the debt-laden Gucci owner - even if it comes at a cost. Under current Chairman and CEO Francois-Henri Pinault, Kering bought a 30% stake in Valentino for 1.7 billion euros in 2023 from Qatari fund Mayhoola to diversify away from slowing star brand Gucci, with a commitment to buy the rest by 2028. However, the deal includes options that could force Kering to buy the remaining 70% as soon as May 2026, company filings show, potentially adding to Kering's 10-billion-euro-plus debt pile. In a note to clients this month, Bank of America analyst Mark Xu estimated the potential liability at 4-6 billion euros ($4.7-7.0 billion), depending on Valentino's performance. Revisiting the Valentino deal, which would require bringing Mayhoola back to the negotiating table, will be one of the first and biggest challenges for De Meo, industry experts and bankers say. The former Renault boss was picked in June to turn round the 24-billion-euro French luxury conglomerate. "With incoming CEO Luca de Meo joining in September 2025, not having to deal with the integration of Valentino may be one less thing on his already long to-do list," RBC analysts said on Friday. Contacted by Reuters about the report in Italian newspaper Corriere della Sera that Valentino could be put up for sale, Mayhoola CEO Rachid Mohamed Rachid said it was "untrue". Kering declined to comment. Kering shares rose 3.5% after the report, outperforming the STOXX Europe 600 index, suggesting investors would welcome a sale. Investment bankers told Reuters they expect De Meo to start reviewing Kering's entire portfolio. Besides Gucci, the group owns brands including Bottega Veneta and Yves Saint Laurent and high-end perfume label Creed, which Pinault bought in 2023 for 3.5 billion euros amid a wider acquisition spree. Pinault's swoop on Valentino was meant to create a second flagship brand rooted in haute couture. However, shortly afterwards the luxury sector entered a prolonged slump, and the Italian label appointed former Gucci designer Alessandro Michele to replace long-serving Pierpaolo Piccioli. Last year, Valentino's revenue declined 2% at constant exchange rates to 1.3 billion euros, while its core earnings (EBITDA) - the crucial variable for any prospective buyer - fell 22% to 246 million euros, filings show. The slowdown in demand for Valentino's designs put Kering at risk of potentially having to paying an excessive price for the Italian label at a time when the conglomerate is already struggling with rising debt and lower sales, according to three industry sources. Things at Valentino did not improve much in the first months of 2025, according to one source familiar with the label and a banking source. Last month, Valentino said its went on sick leave. Adding to its troubles, one of the brand's units has also been put under court administration in Italy after an investigation exposed labour exploitation in its supply chain. Any near-term sale would therefore have to come at a hefty discount. "Offloading the asset would make sense for De Meo, but he would have to accept a writedown," said one of the industry sources. Investors in Kering may swallow the hit if they believe it would allow De Meo to focus on his biggest challenge: reviving Gucci, which still makes up almost two-thirds of Kering's core profit. For Mayhoola, however, settling for much less than the stellar price tag it achieved in 2023 could be painful. "The Valentino deal is the best deal Rachid ever made," a source close to Mayhoola told Reuters after De Meo's appointment in June. ($1 = 0.8588 euros)
Fashion Network
3 days ago
- Business
- Fashion Network
Mayhoola denies speculation of possible Valentino sale with Kering
Qatar-backed investment fund Mayhoola has denied a report published by Italian newspaper Corriere della Sera that it is considering selling Valentino, the Rome-based fashion house it co-owns with French luxury group Kering. 'This news is untrue,' Mayhoola chief executive Rachid Mohamed Rachid told Reuters on Friday, directly dismissing the report. Kering declined to comment. Kering, which owns Gucci and other luxury brands, acquired a 30% stake in Valentino in 2023 for $1.7 billion, with a commitment to purchase the remaining 70% by 2028. The deal was positioned as a strategic move to establish a second flagship brand rooted in couture. The timing of the acquisition, however, came just before the global luxury slowdown and has since become a topic of concern for investors. According to Kering's latest annual report, completing the Valentino acquisition could cost the group €4 billion ($4.64 billion), should Mayhoola choose to exercise its put options as early as 2026. Kering shares, which have dropped more than 60% in value over the last two years, initially climbed by 2.5% following the Corriere article but lost momentum after Mayhoola's denial. The speculation surrounding Valentino comes amid Kering's internal portfolio review, as the group faces mounting debt and industry-wide headwinds. Under pressure to free up capital, Kering has been evaluating its asset structure under the leadership of newly appointed CEO Luca de Meo, set to officially begin his role on September 15. Valentino itself has also been in the spotlight. Its CEO, Jacopo Venturini, was recently placed on medical leave, and its handbag division, Valentino Bags Lab Srl, was placed under court administration due to labor violations identified in its supply chain. In 2023, the company appointed Alessandro Michele as creative director, following the departure of long-time designer Pierpaolo Piccioli. That same year, the fashion house reported a 2% decline in revenue at constant exchange rates, totaling €1.31 billion ($1.52 billion). ($1 = €0.8607)
