Kering has announced its first-half results, as well as its new 30% stake in Valentino for €1.7 billion in cash. Kering's first-half revenue totaled €10,135 million, up 2% as reported and on a comparable basis.
Under the Valentino deal, Kering has an option to acquire 100% of the share capital of Valentino no later than 2028. The transaction is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering, per the groups.
The move comes amid an upswing in Kering Beauté, including the appointment of Raffaella Cornaggia as CEO and the acquisition of Creed.
The Valentino brand is currently not explicitly tied to that division's plans. As of January 1, 2019, L'Oreal has held the fragrance and beauty license for Valentino.
"In the first half, we pursued our investments in our houses’ desirability and exclusivity," said François-Henri Pinault, Kering's chairman and CEO. "While engaging in critical forward-looking initiatives, we maintained a high level of profitability. We also took some decisive steps to expand our footprint in the luxury universe, notably with the acquisition of the famed Creed fragrance house to accelerate the liftoff of Kering Beauté. Together with the major organizational changes we announced last week to enhance stewardship of our houses, as well as the many projects we have already launched over the past few months, the developments of the first half strengthen my confidence in Kering’s future prospects.”
