Agreement between Kering and Mayoola, Valentino reorganisation postponed until 2029

They go fast, Luca De Meo and Riccardo Bellini, recently appointed, respectively, ceo of the French luxury group Kering and of the Valentino maison, controlled by the Qatari fund Mayhoola. Fresh from their appointments (that of the former dates back to 16 June, that of the latter to 20 August) and even fresher from their authentic immersion in the day-to-day reality of the two protagonists of global luxury: De Meo received the go-ahead from the shareholders' meeting on Tuesday and will assume the role of CEO to all intents and purposes on 15 September, Bellini has been in office since 1 September.

Kering and Mayhoola, in a terse statement released after the Paris Stock Exchange closed (the Qatari fund is not listed), explained that they had reached an agreement 'to modify the shareholders' agreement, specifically concerning the evolution of Valentino's shareholding structure (...). The current ownership structure of the maison will not change before 2028'.

It had been clear to everyone since the appointment of the new CEOs that the agreement made in 2023, when Kering acquired a 30 per cent stake in Valentino, would be the first dossier to be addressed. If we want to make a further distinction, the issue was even more urgent for Kering than for Mayhoola: the agreement of two years ago - when the French group and even more so the entire high-end sector seemed to be going through a period of growth - provided for put options for the remaining 70% stake in Valentino held by Mayhoola, exercisable against Kering in 2026 and 2027. The options are now postponed to 2028 and 2029, respectively; at the same time, Kering's call option on Mayhoola's share, initially scheduled for 2028, is postponed to 2029.

'The current situation reinforces our determination to act without delay. This will require clear and strong choices,' Luca De Meo had said the day before in front of Kering shareholders. 'We will have to continue to reduce our debt and, where necessary, rationalise, reorganise and reposition some of our brands. A speech in perfect French, which the Italian manager must have perfected during the years in which he led and reorganised the Renault group, at the most difficult time for the European car industry. The challenge for Kering is of equal magnitude. On the one hand, there is the overall slowdown in the high-end sector: revenues and profitability of all listed companies fell in the first half of the year, with the sole exceptions of Cucinelli, Prada and Hermès. But the French group's declines are a story in themselves: compared to the peak in August 2021, Kering shares have lost 70% and in the first six months, revenues have fallen by 15% to 7.6 billion and net profit by around 46% to 474 million. Valentino is also suffering: in 2024 revenues dropped by 3% to 1.3 billion and profit by 22% to 246 million.

First things first, the Americans say, to emphasise the importance of getting priorities in line. And until the end of 2028, changing Valentino's set-up would not seem to be a priority for either Kering or Mayhoola.