Kering is going all-in for luxury after winning shareholder approval to spin off the bulk of its shares in German sportswear giant, Puma.
“Ten years ago, PPR [now Kering] was a retail group that generated 17 percent of its sales in luxury… last year, luxury represented 70 percent of Kering sales,” said Kering managing director Jean-François Palus. “In 2018, luxury will represent 100 percent of our sales.”
Earlier this week, Kering announced massive growth across its portfolio, particularly at Gucci, where online sales more than doubled in the first quarter of 2018.
A look from Gucci’s blockbuster fall 2018 fashion show. (FirstVIEW)
“You see, we are close to reaching our transformation into a pure luxury player,” said chief executive officer François-Henri Pinault. “I would even say one of the most pure luxury players.”
Francois-Henri Pinault and Selma Hayek at a 2017 screening of “Beatriz at Dinner” sponsored by Gucci. (Patrick McMullan)
According to WWD, the bulk of Kering’s Puma shares will be distributed to Kering’s shareholders, with the Pinault family’s private investment firm Artemis retaining a 29 percent stake in the company. Kering itself will retain a 15 percent stake in the company, leaving 55 percent to “float free” and, hopefully, attract new institutional investors.
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