The luxury group will have to inject cash into its 30% stake in Valentino, alongside the main shareholder, the Mayhoola fund, and face a lawsuit from Coty. The American giant is contesting the terms of the termination of its Gucci license, which Kering plans to transfer to the L’Oréal group, along with its entire Beauty subsidiary.
Now under the energetic leadership of Luca de Meo, Kering is not out of the woods yet.
The luxury group is facing obstacles both on the front of Maison Valentino, in which it is a minority shareholder (30%), alongside the Qatari fund Mayhoola (70%), and on that of its subsidiary Kering Beauté.
A lawsuit from Coty
As for Kering Beauty, the announcement on October 19 of a long-term strategic partnership with the L’Oréal group, with a view to its eventual sale, has not been welcomed by everyone. In particular, it has not been welcomed by the Coty group, which holds the beauty and fragrance license for Gucci, Kering’s flagship brand, until 2028. The group will therefore have to do without it after that date, even though it accounts for around 8% of its revenue and 11% of its profits, according to analyst firm Evercore ISI.
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Read also > Kering postpones acquisition of Valentino
Featured photo: © Gucci
