Kering : Launch of Stock Repurchase Program, L’Oreal Jumps as Luxury Cosmetics Get Another Boost in China And The Other News Of The Day
Kering : Launch of Stock Repurchase Program
Kering announced its intention to buy back up to 1% of its share capital through the repurchase of shares over 12 months. In this context, Kering has signed a share buyback agreement with an investment service provider. The total consideration of the repurchase program covered by this tranche shall not exceed €300,000,000 (three hundred million euros) and the price per share shall not exceed €480 (four hundred and eighty euros), i.e. the maximum price set by the Meeting of Shareholders of April 26, 2018 in its 10th resolution.
In June, Kering share was representing around €522, but the price has fallen by 3% since the beginning of the year.
A first tranche covering a maximum volume of 631,000 shares, corresponding to approximately 0.5% of Kering’s outstanding share capital, may be repurchased.
The shares acquired under this program will be cancelled.
L’Oréal overtakes all expectations
L’Oréal reported a 6.2% increase in turnover to €6.47 billion, the highest increase of the group in 10 years. But these results show great disparities.
The “Luxury” business, which includes Lancôme, Giorgio Armani and Yves Saint Laurent brands, accelerated with +14.8%, particularly in Asia-Pacific, mainly in China.
“Usual Consumer products” registered a 1.2% growth but experienced difficulties in Western Europe and Brazil.
Western Europe also suffered a decline in sales in the third quarter with -1%.
“Business in Western Europe is still marked by a difficult situation, particularly in the United Kingdom“, where the beauty market is slowing down, said Jean-Paul Agon, CEO of l’Oréal.
The group’s aim is to achieve comparable growth this year, exceeding the growth of the global cosmetics market.
Louis Vuitton X Grace Coddington
Nicolas Ghesquière, artistic director of Louis Vuitton’s women’s collections, celebrated the inauguration of his pop-up store in New York.
The pop-up store delivers pieces from the collaboration between the brand and Grace Coddington, former artistic director of Vogue US.
The “Catogram” capsule collection, announced last May during the brand’s cruise show, pays tribute to the pets of the two artists. The monogram is displayed with Pumpkin and Blanket, Grace Coddington’s two Persian cats, as well as Léon, Nicolas Ghesquière’s labrador.