At the end of October, the luxury group led by Luca de Meo confirmed that it was rolling out a strategic review at its subsidiary created by the late Alexander McQueen, which will result in the loss of 55 jobs at its London headquarters.
Luca de Meo, the new CEO of Kering, is continuing to clean house.
After announcing an alliance between Kering Beauté and L’Oréal, which could lead to its sale, the luxury group confirmed a report by the American media outlet WWD that it was embarking on a “strategic review” of its subsidiary Alexander McQueen.
“As part of a comprehensive strategic review of our global operations, we are restructuring our UK headquarters and reducing the complexity of our international markets,” the company said. The program, which includes the likely elimination of 55 jobs at the London headquarters, or 20% of the workforce, aims to “return the business to sustainable profitability over the next three years.”
Strategic transformation
In a statement sent to AFP, Kering explained that it “fully supports McQueen in its strategic transformation.” “We are confident that the measures taken will strengthen the company’s position in the global luxury market and enable it to be fully aligned with its strategic objectives and operational needs,” the group said.
The sale of Alexander McQueen does not appear to be on the cards, even though Luca de Meo, shortly after his appointment, indicated that the group should “continue to reduce its debt and, where necessary, streamline, reorganize, and reposition some of its brands.”
Less attractive than Kering Beauté…
But it would undoubtedly have had less chance than Kering Beauté, a subsidiary riding the wave of a booming market, of finding an interested buyer…
According to the media outlet nss, “Alexander McQueen is undoubtedly the most problematic of Kering’s brands: it is relatively small, has no it-bag, no perfume business, and no major critical or commercial success.”
Founded in 1992 by the talented but troubled British designer Alexander McQueen, whose fashion shows were as spectacular as his designs, the House joined the Gucci Group (now Kering) in 2001. The designer then sold 51% of the capital.
From 1996 to 2001, Alexander McQueen took over from John Galliano as creative director at Givenchy.
In February 2010, the designer, known for his dark romanticism in his creations, took his own life. His loyal right-hand woman, Sarah Burton, took over as creative director. Appointed in 2024 as artistic director of Givenchy, she was replaced at McQueen in October 2023 by Seán McGirr.
A division that “slowed its decline”
Still weighed down by its flagship brand Gucci, which is struggling to recover, Kering unveiled on Wednesday, October 22, a 10% drop in revenue in published data (-5% on a comparable basis) to €3.4 billion in the third quarter.
And although Alexander McQueen’s revenue is not broken down, it is part of the “Other Houses” division, which includes fashion (Alexander McQueen, Balenciaga, Brioni, etc.) and jewelry (Boucheron, Pomellato, Qeelin), which slowed its decline. While its revenue had fallen sharply by 14% on a comparable basis to €1.5 billion in the first half of the year, it rose by 1% (with a further decline of 5% in published data) to €652 million in the third quarter.
“We are working tirelessly on our recovery, as evidenced by our recent decisions,” Luca de Meo emphasized when the latest results were published. While not a major factor in Kering’s accounts, the restructuring of Alexander McQueen shows that nothing should escape the sharp eye of the CEO.
Read also > [A Brief History of Luxury] Alexander McQueen’s skull, a motif as deadly as it is fascinating
Featured photo: © McQueen
