One of the biggest Fashion deals of the year – Kering acquired a 30% stake in Valentino

Source : Valentino website

The biggest news comes at a time when Kering reported the Q2 results which missed the analyst expectations. Gucci, the group’s cash cow, missed the analyst growth expectations of 4.2 percent by showing a growth rate of only 1 percent. Other brands in its portfolio also showed a slower growth rate with regard to the decline of aspirational consumer spend in the US market.

Despite the underwhelming performance, the spotlight shifted to its disclosure of acquiring 30% of Valentino for €1.7 billion ($1.9 billion) and having the option to own the entire brand in the next five years. This strategic acquisition move is a significant boost for Kering as it aims to strengthen its luxury brand portfolio and stimulate further growth.