Valentino, soon to be owned by Kering, hires a sector heavyweight

Kering still owns only 30% of Valentino, but its full acquisition by 2028 has been contractually agreed. Many investors would like to see this contract renegotiated to allow Luca De Meo, the group's future CEO, to focus on his long to-do list.

In April, François-Henri Pinault informed his shareholders that he wanted to acquire the entire Italian fashion house. But the arrival of Luca De Meo in mid-September could reshuffle the pack. Initially, the acquisition was intended to strengthen a portfolio that was already over-dependent on Gucci with a second luxury heavyweight.

Signed in 2023 at the instigation of François-Henri Pinault, the agreement provides for the purchase of 30% of Valentino for €1.7bn, with a mandatory purchase option on the remaining 70% by 2028. This clause could even be activated as early as May 2026. This would expose Kering to liabilities estimated at between €4bn and €6bn, according to Bank of America, while its net debt already exceeds €10bn.

However, since then, the sector has been through a rollercoaster ride. In 2024, Valentino's revenue fell 2%, while its EBITDA dropped 22%. This is cause for concern for shareholders, who are already worried about the complex relaunch of Gucci and reluctant to integrate another major fashion house in the immediate future. Especially since Luca De Meo is reportedly considering a global review of the brand portfolio.

The markets are not mistaken: Kering's share price rose 3.5% last month following a rumor, quickly denied, that Valentino was being sold to a third party.

A renegotiation of the agreement would force Kering to record a heavy write-down and require an agreement with Mayhoola, the Qatari fund that owns the remaining 70%.

This is a story to watch, but the Valentino-Kering affair will continue to make headlines.

Riccardo Bellini, new boss of Valentino

At the same time, Valentino is welcoming a new CEO: Riccardo Bellini. This move is part of a wider game of musical chairs in the luxury sector, as demand falls in the key US and Chinese markets.

Over the next two months, several designers will make their debut at Fashion Week: at Chanel, Balenciaga (Kering), Loewe (LVMH), Maison Margiela, and Versace (Tapestry).

Ricardo Bellini brings 30 years of experience in the luxury sector to the table. Co-CEO of Mayhoola, he has also headed up Maison Margiela and Chloé, following positions at Diesel and Procter & Gamble. He will now work alongside Alessandro Michele, formerly of Gucci, who became creative director at Valentino last year.

His appointment comes at a pivotal point for the Italian fashion house, with its future within Kering still uncertain.