Gucci Sales Now FLATLINING After Massive Price Increases, Kering Heading To Valentino For New Sale Boost 

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Image of the Gucci Marmont handbag which retails for $3,850 or RM12,800. Photo taken from Gucci's official website.

Kering, a French luxury group facing challenges in boosting sales for its flagship brand Gucci, revealed its acquisition of a 30% stake in Italian fashion label Valentino from Qatari investment fund Mayhoola for RM 8.4 billion in cash. The deal includes an option for Kering to purchase the remaining share capital of Valentino by 2028. 

Gucci sales flatlining

This move is part of a broader strategic partnership between Kering and Mayhoola, which could potentially lead to Mayhoola becoming a shareholder in Kering. However, Kering’s second-quarter sales fell short of market expectations, showing only 3% growth, particularly at Gucci, despite recent management overhauls. In comparison, other luxury companies like LVMH reported double-digit growth. 

Kering’s North American retail revenue also declined by 23% in the same period. Despite this, Kering plans to have board representation at Valentino, and the 30% stake purchase is expected to be finalized by the end of the year. Valentino, known for its iconic fashion designs, currently operates 211 stores and achieved 1.4 billion euros in revenue in 2022.

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Image of the Gucci Marmont handbag which retails for $3,850 or RM12,800. Photo taken from Gucci’s official website.

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