Latest news with #LucadeMeo
CNBC
a day ago
- Business
- CNBC
New Kering CEO could 'make Gucci great again,' Barclays says
Monday - Friday, 08:00 - 11:00 CET | 14:00 - 17:00 HK/SG Squawk Box Europe Podcast Carole Madjo, head of European luxury goods research at Barclays, weighs in on the potential turnaround of Kering-owned Gucci under new CEO Luca de Meo, and broader trends within the sector.
Express Tribune
3 days 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
Fashion Network
5 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)
Fashion Network
5 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)
Fashion Network
5 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)
