Kering, Mayhoola May Sell Valentino, Says Italian Report

Post by : Monika

Photo: Reuters

Kering is a large fashion company from France. It owns famous brands like Gucci, Balenciaga, and Saint Laurent. Another well-known brand that Kering has a stake in is Valentino, an Italian fashion house famous for its beautiful designs and luxury style. Now, there is news that Kering and its partner, a Qatari investment group called Mayhoola, are thinking about selling Valentino. This is a big decision and may change the future of both companies.

Let’s look deeper into why Kering might sell Valentino, what led to this moment, who will decide, and what the future may hold.

What Is Happening?
Kering is working closely with Mayhoola, a fund from Qatar that owns a large part of Valentino. According to reports from trusted newspapers in Italy, both companies are thinking about selling Valentino. Nothing is final yet, but the talks have begun. This decision could affect not only Valentino but also the future direction of Kering.

Why Is Kering Thinking About Selling?
There are a few major reasons why Kering might want to sell Valentino. These reasons are connected to money, business strategy, and the current state of the luxury fashion market.

1. Kering Has a Lot of Debt
Over the past few years, Kering spent a lot of money buying parts of different fashion brands. While this helped them grow, it also increased the company’s debt. When a company has too much debt, it becomes harder to invest in new projects or deal with hard times. So, selling part of the business, like Valentino, might help reduce that debt.

2. Fewer People Are Buying Luxury Fashion
Luxury brands sell high-end products like expensive dresses, designer shoes, and fancy bags. But now, fewer people are buying these items. Around the world, people are spending less on luxury fashion. This means Kering and other companies are earning less money than before.

3. Shareholders Want Profit
Kering’s investors and shareholders want the company to make more profit. They also want the company to be more financially stable. These people are putting pressure on Kering to make smart choices, like selling some assets, to keep the company strong and successful.

Together, these reasons are making Kering think seriously about selling Valentino.

What Does Kering Own in Valentino?
Kering does not fully own Valentino. In 2023, it bought 30% of the company. That deal cost around $1.7 billion. At that time, Kering planned to buy the remaining 70% by the year 2028. The goal was to make Valentino its second major brand after Gucci. Kering believed Valentino had a lot of potential and could become a key part of its family of fashion labels.

But now things may change. If both Kering and Mayhoola agree, they can either sell their shares or split them in a new way. They could also find a new buyer together.

Who Will Make the Final Decision?
Right now, Kering is waiting for its new CEO to start work. His name is Luca de Meo, and he will join the company on September 15, 2025. He is known for turning around troubled companies. Before this, he led Renault, a well-known car company, and helped them improve their finances.

Once Luca de Meo takes over, he will look at the entire company and decide if selling Valentino is the best option. Many people are watching closely to see what he will do.

What Problems Has Valentino Faced?
Valentino is a very old and respected fashion house. It was started in 1960 in Rome, Italy. Over the years, it became famous for stylish clothes and red-carpet fashion. But recently, it has faced several problems.

1. Leadership Changes
Last month, the company’s CEO, Jacopo Venturini, had to take time off due to health reasons. Before that, in early 2024, Valentino’s creative director Pierpaolo Piccioli left the company. He was the person in charge of the designs and fashion collections. He was replaced by Alessandro Michele, who had previously worked at Gucci.

These changes have made things less stable inside the company. A fashion house needs strong leaders to guide the team, and frequent changes can cause problems.

2. Falling Sales and Profits
In the last year, Valentino’s revenue fell by 2%. The company earned €1.31 billion, which is about $1.52 billion. That’s less than what they earned the year before.

Even more concerning, their profit dropped by 22%. This means the company is making less money even after selling high-end products. Falling profit is a serious sign that something needs to change.

These problems, together with leadership changes, have made it harder for Valentino to stay strong in the luxury fashion world.

What Could Happen Next?
If Kering and Mayhoola go ahead with the sale, they will need to find someone to buy Valentino. The buyer could be:

• Another luxury fashion group
• A private investment company
• A wealthy individual investor

Kering will also need to decide if it still wants to buy the rest of Valentino’s shares or if it should sell what it already owns. The new CEO will likely take a close look at all of Kering’s brands and decide which ones are worth keeping.

Why Does This News Matter?
This news is important because Valentino is not just any brand—it is a symbol of high fashion and Italian style. If Kering sells Valentino, it will be a major shift in the fashion industry. It will also show that even large companies must change their plans when things are not going well.

The decision also reflects how the luxury market is changing. People are buying fewer luxury items now, especially in areas like China and Europe. Even rich people are being more careful with their money.

An Easy Example to Understand
Imagine Kering is a big company that owns several fancy cafés. One of those cafés is called Valentino. It’s known for its beautiful look and high-quality food. But recently, the café hasn’t been doing well. Fewer customers are coming in, and the earnings are lower. The person in charge of the café left, and a new chef joined.

Now, the company is asking: Should we keep this café and try to fix it? Or should we sell it and use the money to improve our other cafés?

Soon, a new boss will join the company, and he will have to make the final call.

Luxury fashion