Latest news with #Pinault
Miami Herald
4 days ago
- Business
- Miami Herald
Gucci, YSL owner sends blunt message about tariff threats
I bought my first pair of Saint Laurent (YSL) heels when I was 25. They were all black patent leather in the iconic Tribute style, with crisscross straps and a sky-high platform that made absolutely no sense and every kind of sense at the same time. I can't remember exactly why, but I had some reason to celebrate (or so I told myself), and I couldn't resist the rush of slipping those shoes on in the YSL store at Copley in Boston. They were bold. A little aggressive. And completely, unapologetically French. Related: Popular luxury brand takes a massive leap of faith in risky move That moment wasn't just about fashion - it was about owning something that felt like power. Putting them on was like flipping a switch: confidence, elegance, a little bit of edge. Luxury brands like YSL know exactly what they're selling. Sure, there's craftsmanship and quality, but really, it's culture. A story. An idea that something made in France or Italy is worth paying a premium. So when presidents start throwing around threats of tariffs and urging companies to move production closer to home, that idea gets tested. But Kering (PPRUY) , the company behind Gucci, YSL, and Bottega Veneta, just made it clear: it has no intention of budging. Image source: Sorbis/Shutterstock On the Q1 2025 earnings call, Kering CEO François-Henri Pinault made one thing clear: the company won't be moving its production out of Europe in response to U.S. tariffs. "Most of our brands we are producing in Italy and in France, and this is part of the promise that we bring through our products, through our heritage, to the consumer," he told investors. He went even further, adding, "We are selling part of our culture, being an Italian culture or a French culture. So we have no plan of producing to counter the tariff. It makes no sense." Related: Luxury outerwear brand avoids tariffs as rivals try to exit China His comments came just days after President Donald Trump signaled that sweeping new tariffs on goods from the European Union were imminent, calling the EU's trade actions "an atrocity." Pinault said the company already operates in large global markets (like China) where import duties are standard, and he emphasized that adjusting its entire supply chain would dilute the very value proposition luxury buyers are paying for. Still, Kering isn't ignoring the issue. Pinault acknowledged the company may have to rethink pricing strategy if the tariffs go into effect. Tariffs aren't the only problem on Kering's plate. In its latest results, the group reported a 14% drop in revenue for the first quarter of 2025, totaling €3.9 billion. Gucci continues to struggle. The brand brought in €1.6 billion in Q1 2025, down 24% year-over-year. Sales fell sharply across both its retail and wholesale channels. Meanwhile, YSL posted €679 million in Q1 revenue, down 8%, with some resilience in European and Middle Eastern markets. Kering closed 25 stores globally during the quarter, and although Bottega Veneta (up 4%) and its beauty and eyewear segments saw growth, the group's overall trajectory remains challenged. Pinault addressed the issue, stating, "We are increasing our vigilance to weather the macroeconomic headwinds our industry faces." The company also recently offloaded its stake in The Mall Luxury Outlets and entered a joint venture for three Parisian real estate assets, moves that signal a tighter focus on its core business and brand strategy. Kering's message - heritage over haste - is one not all luxury players may be able to afford. But if it pulls through, it'll be because it stood by elegance, even when tariffs made shortcuts tempting. Related: Versace, Michael Kors, Jimmy Choo stumble hard The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
7 days ago
- Entertainment
- Yahoo
Linda Evangelista Joins Ex and Salma Hayek for Rare Public Reunion at Son's Graduation
Linda Evangelista Joins Ex and Salma Hayek for Rare Public Reunion at Son's Graduation originally appeared on Parade. Co-parenting at its finest! Linda Evangelista took to social media to share a sweet post about her son, Augustin James, graduating from high school. 'Then this happened. 🎓♥️✨🙏🏻 I'm one proud momma. Blessed blessed blessed,' the model, 60, captioned an Instagram carousel on Monday, June 2. In the series of photos, Evangelista posed with Augustin, 18, alongside her ex François-Henri Pinault and his wife, Salma Hayek. She also shared solo shots of Augustin with Pinault, 63, and Hayek, 58. A lot of fans agreed that it was a special moment to see the blended family all together for the rare public outing. 'How beautiful that his dad and Salma can be part of the event! Everybody wins,' one user commented. 'What a beautiful example of a blended family. Gorgeous. Congratulations to you all,' added another. 'Beautiful blended family! It's so nice when everybody gets along like civilized people,' a third user chimed in, while a fourth echoed, 'This is how it should be … always!' Evangelista had a brief relationship with Pinault, who is the CEO of Kering, in the mid-2000s. The original supermodel gave birth to Augustin in October 2006. 🎬SIGN UP for Parade's Daily newsletter to get the latest pop culture news & celebrity interviews delivered right to your inbox🎬 At first, Evangelista kept Pinault's identity a secret, eventually revealing that he was Augustin's father during a 2011 child support case. Pinault and Hayek started dating in 2006, and later got married in 2009. They welcomed their daughter, Valentina Paloma Pinault, in September 2007. Pinault also shares son François Pinault and daughter Mathilde Pinault with ex Dorothée Lepère. Linda Evangelista Joins Ex and Salma Hayek for Rare Public Reunion at Son's Graduation first appeared on Parade on Jun 3, 2025 This story was originally reported by Parade on Jun 3, 2025, where it first appeared.
Yahoo
7 days ago
- Entertainment
- Yahoo
Linda Evangelista and Salma Hayek are blended-family goals
It was a family affair at the recent graduation for Linda Evangelista's son, Augustin James. The supermodel shared photos of her 18-year-old son's high school graduation, which included photos of his father, billionaire businessman Francois-Henri Pinault and Pinault's wife, actress Salma Hayek. 'Then this happened. 🎓♥️✨🙏🏻 I'm one proud momma,' Evangelista wrote in the caption. 'Blessed blessed blessed…' Evangelista spoke with Vogue in 2023 about co-parenting with Hayek, who has been married to Pinault for more than 15 years. 'I was sick at Thanksgiving,' Evangelista told the publication. 'And Salma got on the plane with her daughter, came here, and made Thanksgiving dinner.' The model said her son's stepmother even 'asked what I wanted—it was a very eclectic wish list.' 'I wanted her Mexican chicken with truffled potatoes, and she spent the day in the kitchen and cooked it herself. No help,' Evangelista said. 'The kids helped her at the end. She made a feast—a beautiful, beautiful meal.' 'I had told her that I wasn't going to have Thanksgiving; I wasn't feeling well,' she added. 'And she said, 'Oh yes you are: I am coming.' And poof, she was here.'
Business of Fashion
29-05-2025
- Business
- Business of Fashion
Seeking to Reduce Gucci Dependence, Kering Created a Debt Problem
In trying to reduce Kering's over-reliance on struggling flagship label Gucci, French billionaire Francois-Henri Pinault has created another problem, as a string of acquisitions piled up debts just as the industry entered a prolonged slump. Those debts are getting harder to manage, with Kering shares down 60 percent over the past two years and US President Donald Trump's tariff threats dashing hopes of a sector rebound, and are weighing on the group as it vies with deep-pocketed rivals. Pinault's family holding Artemis, which controls Kering and also has a stake in sports brand Puma is also heavily indebted, and will likely have to pay back €500 million ($567 million) to investors in cash following Thursday's cut-off date for a convertible bond, after Puma shares underperformed. Kering may also need to find billions of euros to buy the remaining stake in fashion house Valentino as soon as next year. The company is cutting costs and selling stakes in properties, but if the debt situation does not improve, it could face a third credit rating downgrade in three years, two Kering bondholders told Reuters, declining to be named. That could further hamper its ability to revive Gucci and compete with the likes of Hermès, Chanel and LVMH, which have little to no debt and are investing heavily in their brands. 'This is the worst of times, because you've got a fall in sales, which is going to translate into a fall in profit, and at the same time, interest rates are rising. So they can't renegotiate their debt,' said Eric Pichet, economics professor at the Kedge business school in France. Kering declined to comment for this story. Pinault, who in 2005 took the helm of the conglomerate founded by his father Francois, enjoyed years of spectacular growth at Kering thanks to Gucci and the 'ugly-chic' designs of its former creative director Alessandro Michele. But as shoppers tired of Michele's fur-lined loafers after the pandemic, Pinault sought to diversify through acquisitions, including a 30 percent stake in Valentino, high-end perfume maker Creed, prime real estate and — via Artemis — a Hollywood talent agency. The strategy left Kering with net debt of €10.5 billion at the end of 2024, up from close to nothing in 2021 and half its market capitalisation, and an even larger debt pile at Artemis, according to the latest available filings. Three graphs showing Kering's and Artemis's net debt rose significantly since 2021, while its free cash flow steadily declined. Shopping Spree Since the pandemic, Pinault has struggled to choose between bold fashion creations and more classical looks as the best way to revamp Gucci, a person who advised Pinault and other Kering executives during that period told Reuters. With Kering's moneyspinner sagging, Pinault moved to snap up perfume maker Creed for €3.5 billion and 30 percent of Valentino for $1.9 billion in 2023, both in cash. In less than two years, Kering also splashed out roughly €4 billion on properties including on New York's Fifth Avenue, and on prestigious shopping streets in Milan and Paris. A company insider said Kering paid chunky premiums to outbid rivals, fearing its own labels — which also include Yves Saint Laurent and Balenciaga — could lose access to prime sites. Kering, whose free cash flow fell by almost 30 percent in 2024 to €1.4 billion, is now rushing to sell stakes in these buildings, hoping to free up €2 billion in cash by 2026, it told analysts in February. But the stakes may go for less than their book value. Kering recently took a €100-million charge on the sale of a 60 percent stake in three Paris properties, its 2024 annual report shows. There are other pressures too. Kering has said it intends to fully acquire Valentino in 2028 from luxury fund Mayhoola, backed by Qatar's royal family. But put options included in the deal might force Kering to buy the remaining 70 percent stake as soon as May 2026, company filings show. This could add €4 billion to Kering's cash needs, depending on Valentino's performance. Kering said in April it was confident cost-cutting measures, including store closures and redundancies, would enable it to fund an early deal, if necessary. Plus it can pay for part of the remaining stake with up to 3 million Kering shares, or 2.4 percent of its equity. Mayhoola would welcome a stake in Kering as part of its expansion strategy, a source close to the fund told Reuters. But this option would only finance a fraction of the overall price tag, based on Kering's current market value. Luxury share price moves since January 2023, showing Kering shares underperformed those of sector rivals LVMH, Richemont, Prada and Hermès. Downgrade Risk Kering's adjusted net debt, which includes rental lease liabilities, stood at 3.8 times core earnings (EBITDA) at the end of 2024, ratings agency S&P told Reuters, while declining to comment on the timing of any potential ratings review. UBS analysts estimated in a recent note that Kering's leverage ratio could reach 4.1 times at the end of 2025. Surpassing four times typically increases the chances of a rating downgrade, one of the bondholders told Reuters. Replicating the acquisition strategy at his family holding company, 63-year-old Pinault, who is married to Mexican-American actress Salma Hayek, used Artemis to buy a 53 percent stake in talent agency CAA for €3.5 billion, according to Artemis filings. Artemis' own net debt, which includes Kering's, stood at €20.2 billion at the end of 2023, more than double the previous year, the filings — the latest available — show. While Kering, which usually distributes at least half of its net income to shareholders, could in theory cut its dividend to save cash, that would only compound problems for Artemis. By Tassilo Hummel, Elisa Anzolin; Edited by Lisa Jucca and Mark Potter
Fashion Network
29-05-2025
- Business
- Fashion Network
Kering's debt burden grows as Gucci strategy falters
In an effort to reduce Kering 's overreliance on its struggling flagship label Gucci, French billionaire François-Henri Pinault may have triggered a new crisis. A series of acquisitions has significantly increased the group's debt load just as the luxury industry enters a prolonged downturn. Managing that debt has become increasingly difficult. Kering shares have dropped 60% over the past two years, and the threat of tariffs from former U.S. President Donald Trump has dampened hopes for a sector recovery. These challenges are weighing heavily on Kering as it competes with deep-pocketed luxury rivals. Pinault's family, which holds Artemis —which controls Kering and holds a stake in sports brand Puma —is also burdened by debt. It may need to repay €500 million ($567 million) in cash to investors following the cut-off date for a convertible bond, triggered by Puma's underperformance. Kering could also face additional financial pressure as early as next year if it is required to buy out the remaining stake in fashion house Valentino. Although the company is cutting costs and selling off real estate, bondholders told Reuters that if its financial position doesn't improve, it risks receiving a third credit rating downgrade in as many years. They declined to be named due to confidentiality. Another downgrade would make it even harder for Kering to revive Gucci and compete with debt-free powerhouses like Hermès, Chanel and LVMH —all of which are investing heavily in their brands. 'This is the worst of times because sales are falling, profits are down, and interest rates are rising. They can't even renegotiate their debt,' said Eric Pichet, an economics professor at France's Kedge Business School. Kering declined to comment for this article. Pinault, who became CEO of Kering in 2005 after taking over from his father François, enjoyed years of explosive growth driven by Gucci and the 'ugly-chic' aesthetic of former creative director Alessandro Michele. However, consumer interest in Michele's fur-lined loafers and eclectic style faded after the pandemic. Pinault responded by diversifying the business through acquisitions. Kering took a 30% stake in Valentino, acquired luxury perfume brand Creed, invested in prime real estate, and—via Artemis—purchased a controlling stake in a Hollywood talent agency. As a result, Kering's net debt surged to €10.5 billion by the end of 2024, up from virtually nothing in 2021. That debt now represents half the company's market value. Meanwhile, Artemis's debt is even higher, according to recent filings. Shopping spree A source who advised Pinault and Kering executives said the group struggled post-pandemic to decide whether Gucci should focus on bold fashion or return to more classical designs. As Gucci's sales declined, Pinault moved aggressively. In 2023, Kering paid €3.5 billion for Creed and $1.9 billion in cash for 30% of Valentino. Within two years, Kering also spent approximately €4 billion acquiring prime retail properties in New York, Milan and Paris. An insider said Kering paid substantial premiums to outbid rivals, fearing that its brands—including Yves Saint Laurent and Balenciaga —could lose access to top-tier locations. With free cash flow down nearly 30% in 2024 to €1.4 billion, Kering is now selling stakes in these properties. According to remarks made to analysts in February, the group aims to raise €2 billion in cash by 2026. However, these sales may not reach their book value. Kering's 2024 annual report shows a €100 million charge on the sale of a 60% stake in three Paris properties. Other pressures are mounting. Kering previously stated it would acquire Valentino outright by 2028 from Mayhoola, a Qatari royal-backed investment fund. However, putting options in the agreement could force Kering to buy the remaining 70% as early as May 2026. Depending on Valentino's performance, this could require an additional €4 billion. In April, Kering said its cost-cutting plan—which includes store closures and layoffs—could allow it to finance an early buyout if needed. The company also noted that it could use up to 3 million Kering shares, or 2.4% of its equity, to pay part of the acquisition price. According to a source close to Mayhoola, the fund would welcome a stake in Kering as part of its broader investment strategy. Still, based on Kering's current market value, a share-based transaction would only cover a small portion of the total cost. Downgrade risk S&P told Reuters that Kering's adjusted net debt—including lease obligations—stood at 3.8 times core earnings (EBITDA) by the end of 2024. While S&P declined to comment on the timing of any potential downgrade, the trend is concerning. UBS analysts recently estimated that Kering's leverage ratio could hit 4.1 by the end of 2025. One bondholder noted that breaching the 4.0 mark often signals an increased risk of a credit downgrade. Replicating his acquisition strategy at the family level, the 63-year-old Pinault used Artemis to acquire a 53% stake in talent agency CAA for €3.5 billion, according to filings. At the end of 2023, the most recent filings show that Artemis's total net debt—including Kering's—stood at €20.2 billion, more than double the previous year. While Kering could theoretically cut its dividend to conserve cash, such a move would likely worsen liquidity issues at Artemis, which depends on dividend inflows. ($1 = €0.8813)
