In the midst of a turbulent phase, according to circles, the luxury goods group Kering is preparing for possible attacks by activist investors.
The LVMH competitor is preparing for greater efforts from certain shareholders such as Bluebell Capital, the Bloomberg news agency reported on Wednesday, citing people familiar with the matter. Bluebell joined Kering and recently met with company representatives to call for efficiency gains at the main brand, Gucci, and organizational changes. Kering shares rose by around seven percent after the news broke.
In the meantime, it will be difficult for the activist investors to influence the operative business: the majority of the group belongs to the Pinault family, which according to company information holds 42 percent of Kering through its Artemis holding company.
In addition to its main brand Gucci, which has recently been clearly weakening, Kering is also known for other names such as Saint Laurent, Alexander McQueen or Bottega Veneta. So far the year has been less successful for Kering than for its competitors LVMH and Hermes. This is also reflected in the share price: the luxury company’s papers with brands such as Louis Vuitton, Rimowa and Dior have gained more than a third in recent months and the Hermes notes have increased by 60 percent. Kering, on the other hand, slipped 1.9 percent over the period.
On Tuesday, the group also announced that longtime Gucci boss Marco Bizzarri will leave the company in September. Kering paid tribute to the manager for his corporate strategy over the past few years. The figures for the most recent quarters, on the other hand, show a sobering development: In the final quarter of last year, sales of the luxury brand fell significantly on a comparable basis and at the start of 2023 Gucci was just able to keep sales stable. (dpa)