Kering’s Debt Drive and Leadership Revamp
The sale comes as Kering SA, long revered for its luxury empire, seeks to reduce its €9.5 billion debt and refocus on its fashion roots. Under the leadership of Luca de Meo, appointed as CEO in September, the company is undergoing a strategic overhaul aimed at boosting profitability and brand strength.
“We will accelerate the development of fragrance and cosmetics for our major houses, allowing them to achieve scale in this category and unlock their immense long-term potential,” De Meo said on Monday.
Financial analysts see the sale as a lifeline. Russ Mould, investment director at AJ Bell, noted that the deal “allows Kering to make a meaningful dent in its onerous borrowing pile.”
Market Reaction and Regulatory Hurdles Ahead
Investor sentiment turned upbeat following the announcement — Kering’s shares rose 3.5% on the Euronext Paris Monday morning, trading higher from Friday’s €309.55 close.
Still, the transaction remains subject to regulatory approval and French employment law compliance, both companies confirmed. While they did not specify which authorities would review the merger, they expect the deal to close by June 2026.
