Latest news with #Francois-HenriPinault
Reuters
4 hours ago
- Business
- Reuters
Exclusive: Pinaults' Artemis says not facing financial strain despite Kering's woes
PARIS, July 29 (Reuters) - A jump in standalone debt at Artemis, the Pinault family company that controls Gucci-owner Kering, is a "temporary spike", and the company is not facing any liquidity problems due to a drop in dividends from Kering and other assets, it told Reuters. The investment vehicle also said that none of its debt was tied to Kering's ( opens new tab share price performance in the terms - or covenants - agreed with lenders, as some investors have speculated. Privately-owned Artemis, chaired by outgoing Kering boss Francois-Henri Pinault, is the top investor in the French fashion and leather goods heavyweight, with a 43% stake, and controls it through a majority of voting rights. It has become the subject of increased scrutiny from investors after Reuters reported it had accumulated high debt across its portfolio as it sought to diversify investments. Some analysts are concerned the high debt level could limit Kering's ability to deliver a turnaround at struggling flagship label Gucci, at a time when major rivals such as Louis Vuitton owner LVMH ( opens new tab are investing heavily in their brands. "We have no liquidity problems," Artemis said in a statement, responding to Reuters questions about its finances. It added that the holding company had less than 500 million euros ($577 million) of debt maturing over the next two years, and more than one billion euros of available cash. Artemis, which also owns 54% of Hollywood talent agency CAA and a 29% stake in sportswear maker Puma, has historically kept a low media and investor profile. But annual accounts published alongside a recent bond issue give some insight into its finances. Artemis' consolidated group debt stood at 26.7 billion euros at the end of 2024, almost double the amount of two years earlier. Kering, the largest asset consolidated in the accounts, held around 14 billion euros of total debt at the end of 2024, built up in large part to finance an acquisition strategy spearheaded by Pinault to counter a slowdown at Gucci. On a standalone basis, which excludes operating businesses such as Kering, Artemis' debt was 7.1 billion euros as of May 31, the company said when announcing the bond issue last month. Last year, Artemis paid 227 million euros in net interest charges to service its growing debt pile, Artemis' 2024 accounts show, up from just 60 million euros the year before. In its statement, Artemis said the 7.1 billion euros of debt was a "temporary spike, only linked to the acquisition of CAA in 2023", which it said was driven by a desire to diversify beyond Europe and the luxury industry. The value of the majority stake in the Hollywood talent agency, which represents A-listers like the Obamas and Scarlett Johansson, was $3.7 billion in Artemis' 2023 accounts. The whole agency has been valued at $7 billion. Just as Artemis is spending more to service its debt, dividend payments from Kering, which accounted for more than 80% of its financial income in the last two years, are falling. Kering slashed total dividends paid on its 2024 earnings, to 739 million euros from 1.7 billion euros a year earlier, after a string of profit warnings. Barclays analysts estimate the payout may drop to 364 million euros in 2026 due to Kering's poor performance this year. Artemis is entitled to roughly 43% of Kering's payout. Kering declined to comment. Puma, which in the last two years contributed 35 million euros to Artemis' annual dividend income according to Artemis' accounts, also cut dividends paid out this year by roughly a third and warned it would be loss-making in 2025. "It is incorrect to assume that we are dependent on Kering's dividend flows to finance the company. In fact, other companies in the Group pay regular and significant dividends which cover most of our debt servicing needs," Artemis said, without elaborating. Besides its stakes in Kering, Puma and CAA, Artemis owns historic auction house Christie's, some exclusive wineries and a company offering polar cruises, all of which are unlisted. Without Kering, Artemis' businesses generated a recurring operating profit of 48.9 million euros in 2024, up from a 115-million-euro loss the year before, its 2024 accounts show. Kering shares have lost close to 60% of their value over the last 24 months, while Puma shares are down 66% in the same time. In a recent note focusing on Artemis's finances, BofA analysts said trading activity and feedback they had received suggested some investors were worried that Artemis' loans might have covenants tying them to Kering's stock performance. Artemis said such speculation was misplaced. "The Group has no financial covenants linked to Kering's share price", it said. June's bond issue tied to Kering's share performance - worth 400 million euros and used to refinance an old bond linked to Puma's stock - was oversubscribed, Artemis said. ($1 = 0.8674 euros)
Express Tribune
21-07-2025
- Business
- Express Tribune
Valentino refutes rumours of sale
Luxury group Kering's partner in Valentino was quick to rule out a newspaper report on Friday that the two were considering selling the Italian fashion label. But that could be just the move that incoming Kering CEO Luca de Meo needs to reset the debt-laden Gucci owner – even if it comes at a cost. Under current Chairman and CEO Francois-Henri Pinault, Kering bought a 30 per cent stake in Valentino for 1.7 billion euros in 2023 from Qatari fund Mayhoola to diversify away from slowing star brand Gucci, with a commitment to buy the rest by 2028. However, the deal includes options that could force Kering to buy the remaining 70 per cent as soon as May 2026, company filings show, potentially adding to Kering's 10-billion-euro-plus debt pile. In a note to clients this month, Bank of America analyst Mark Xu estimated the potential liability at 4-6 billion euros ($4.7-7.0 billion), depending on Valentino's performance. Revisiting the Valentino deal, which would require bringing Mayhoola back to the negotiating table, will be one of the first and biggest challenges for De Meo, industry experts and bankers say. The former Renault boss was picked in June to turn round the 24-billion-euro French luxury conglomerate. "With incoming CEO Luca de Meo joining in September 2025, not having to deal with the integration of Valentino may be one less thing on his already long to-do list," RBC analysts said on Friday. Contacted by Reuters about the report in Italian newspaper Corriere della Sera that Valentino could be put up for sale, Mayhoola CEO Rachid Mohamed Rachid said it was "untrue". Kering declined to comment. Kering shares rose 3.5 per cent after the report, outperforming the STOXX Europe 600 index, suggesting investors would welcome a sale. Besides Gucci, the group owns brands including Bottega Veneta and Yves Saint Laurent and high-end perfume label Creed, which Pinault bought in 2023 for 3.5 billion euros amid a wider acquisition spree. Reuters
Time of India
17-07-2025
- Automotive
- Time of India
Renault makes British executive Duncan Minto interim CEO
Paris, French carmaker Renault on Tuesday made its British chief financial officer Duncan Minto its interim CEO as it works to find a successor to Luca de Meo, who stepped down to run luxury group Kering. Minto, born in 1975 and educated in Scotland, has worked his entire career in Renault and was made CFO in March. He told a press conference that an appointment of a successor to de Meo "should not take very long". He also said the company was lowering its annual forecasts this year because of a "deterioration of trends in the automobile sector". Renault was revising its operating margin to around 6.5 percent of turnover, down from a minimum 7.0 percent given previously. Renault is partnered with struggling Japanese automaker Nissan, which it rescued in 1999. The companies did not merge but own shares in the other in what has proved a rocky alliance. Renault early this month said it was booking a 9.5-billion-euro ($11.2-billion) loss, while Nissan posted a net loss of $4.5 billion for the financial year to March. De Meo, who ran for Renault for the last five years, announced his departure last month, with his exit becoming effective on Tuesday. He is to become the new chief executive of French luxury group Kering, the owner of Gucci, Yves Saint-Laurent, Balenciaga and other premium brands. De Meo is expected to take up the reins at Kering from September 15, subject to board and shareholder approval. Kering's current chief executive is Francois-Henri Pinault, son of the group's billionaire founder Francois Pinault. Francois-Henri Pinault is shaking up Kering's management and would stay on as chairman.
LeMonde
15-07-2025
- Automotive
- LeMonde
Renault names its British CFO interim CEO
French carmaker Renault made its British chief financial officer Duncan Minto its interim CEO on Tuesday, July 15, as it works to find a successor to Luca de Meo, who stepped down to run the luxury group Kering. Minto, born in 1975 and educated in Scotland, has worked his entire career in Renault and was made CFO in March. He told a press conference that an appointment of a successor to de Meo "should not take very long." He also said the company was lowering its annual forecasts this year because of a "deterioration of trends in the automobile sector." Renault was revising its operating margin to around 6.5% of turnover, down from a minimum 7.0% given previously. Renault is partnered with struggling Japanese automaker Nissan, which it rescued in 1999. The companies did not merge but own shares in the other, in what has proved a rocky alliance. Renault early this month said it was booking a €9.5 billion ($11.2-billion) loss, while Nissan posted a net loss of $4.5 billion for the financial year to March. De Meo moving on to Kering De Meo, who ran Renault for the last five years, announced his departure last month, with his exit becoming effective on Tuesday. He is set to become the new chief executive of French luxury group Kering, the owner of Gucci, Yves Saint-Laurent, Balenciaga and other premium brands. De Meo is expected to take up the reins at Kering from September 15, subject to board and shareholder approval. Kering's current chief executive is Francois-Henri Pinault, son of the group's billionaire founder Francois Pinault. Francois-Henri Pinault is shaking up Kering's management and would stay on as chairman.
The Star
17-06-2025
- Automotive
- The Star
Gucci turns to Renault CEO in turnaround bid
KERING SA is set to name the chief executive officer (CEO) of Renault SA as its next CEO, looking to an Italian manager who's turned around the French automaker to perform a similar role at the owner of the struggling Gucci fashion label. Luca de Meo (pic) will be appointed to the job in the coming days, people familiar with the situation told Bloomberg News, confirming a report by Le Figaro. The move follows speculation that Kering was assessing splitting the roles of CEO and chairman, which are both currently held by Francois-Henri Pinault. Pinault's father, Francois, built Kering into one of the world's most prominent luxury-goods companies, but it has struggled to keep pace with rivals such as LVMH and Hermes International in recent years as Gucci has fallen on hard times in China. Under De Meo, shares of Renault have roughly doubled. A representative for Kering declined to comment. Renault said in a statement last Sunday that De Meo had tendered his resignation and would leave the automaker on July 15. The Renault board has started the search for a new CEO, the company added. The choice of De Meo is 'a step in the right direction, it would seem,' said Luca Solca, luxury analyst at Bernstein. 'De Meo adds gravitas and experience to a company that needs it.' What's still to be seen, Solca said, is whether 'he will be able to hit the ground running and be as effective as he has been in the automotive industry.' Splitting roles The shakeup at Kering comes after its shares erased nearly 80% of their value since reaching a record in August 2021. The group has sought to turn around Gucci, which accounts for almost two-thirds of profit, by naming new designers – first in early 2023 and the latest earlier this year – but the efforts have so far failed. The group has also appointed new CEOs for various labels, including Gucci and its second-biggest brand, Yves Saint Laurent, in the past year. French magazine Challenges reported last week that Kering was considering splitting the top leadership positions, with Francois-Henri Pinault, 63, seeking to remain as chairman of the French luxury group his family controls. De Meo, 58, spent five years leading the French carmaker, after earlier roles at Fiat and Volkswagen AG. During his tenure, he inked partnerships for Renault with fashion brands such as Agnès B. De Meo brought Renault back from tough times, as the company took on state-backed loans to survive the pandemic and had to write down billions of euros on its Russian business. De Meo also loosened Renault's ties to Japan's Nissan Motor Co, with which it's had a troubled alliance of more than two decades. Once considered the alliance's weak link, Renault under De Meo leapfrogged Nissan in market value in 2024 as investors rewarded it for accelerating the development of new models, such as the electric Megane E-Tech, returning to profit and inking new partnerships with technology giants such as Qualcomm Inc. Renault, which is 15% owned by the French government, was the only major European carmaker not to issue a profit warning in 2024 and De Meo issued ambitious guidance for 2025. In recent months, Renault also has been buffered by its lack of presence in the United States, where President Donald Trump's tariffs are hitting rivals such as Jeep maker Stellantis NV hard, and in China, where car manufacturers also are suffering from cutthroat competition. 'Healthy foundation' Under the Italian executive, Renault 'has returned to a healthy foundation, boasts an impressive range of products and has resumed growth,' chairman Jean-Dominique Senard said in the statement. Pinault has led Kering for the past two decades. Under him the group, founded by Francois, 88, changed names from PPR to Kering and experienced significant growth in the initial years of Gucci designer Alessandro Michele, who took over in 2015. But Michele stepped down in 2022 after his maximalist and bohemian chic creations fell out of favour. As CEO, the younger Pinault has also been criticised for a relatively hands-off management style, Bloomberg reported last year. In late 2022, Balenciaga, another Kering label, put out an ad campaign that was seen as sexualising children, prompting a backlash. The campaign was overseen by designer Demna who earlier this year was promoted to become the artistic director of Gucci, a move that investors disapproved of. In the past few years, Kering went on an acquisition spree, buying fragrance maker Creed as well as a 30% stake in Italian fashion label Valentino. The company also splurged on prime property acquisitions but it's now seeking to sell stakes in those buildings in a bid to slash its debt. Although headquartered in Paris, Kering owns other Italian brands including leather goods maker Bottega Veneta and jewellery label Pomellato, making De Meo's appointment potentially helpful in bridging cultural divides. The appointment of De Meo will prompt questions regarding the future of two top executives under Pinault: Jean-Marc Duplaix and Francesca Bellettini, who were both promoted to co-deputy CEOs two years ago. The former is focused more on operations and finance, while the latter oversees brand development. — Bloomberg Angelina Rascouet and Albertina Torsoli write for Bloomberg. The views expressed here are the writers' own.
