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French luxury group Kering has taken a cautious step in its efforts to manage its financial future, delaying the full acquisition of Italian fashion house Valentino until at least 2028. The company, owner of Gucci, had previously struck a deal in 2023 to purchase Valentino from the Qatar-backed Mayhoola fund, but under a revised agreement, both parties agreed to push back the timeline.
The decision reflects Kering's current priority to reduce its $11.13 billion debt burden, a weight that has drawn scrutiny from investors as sales have weakened. Valentino's declining performance also influenced the move. In 2023, the brand reported revenues of $1.3 billion, a 2 percent decline, while core earnings fell 22 percent to $246 million. These figures mean that Kering's eventual purchase price, initially estimated around $4 billion, will likely be adjusted downward.
Under the new arrangement, Mayhoola's right to sell its remaining 70 percent stake in Valentino has been postponed to 2028 and 2029, while Kering's option to buy has been delayed until 2029. For both sides, the extension buys time—time for Kering to stabilize its finances and for Valentino to attempt a turnaround in its performance.
Newly appointed CEO Luca de Meo, who took leadership earlier this year, has made clear that his first mission is financial discipline. Speaking with analysts, he emphasized the need to cut costs, restructure where necessary, and reposition brands under the group. His comments acknowledged that the decisions ahead may be difficult but are necessary to restore investor confidence.
The delay also signals that luxury groups, despite their prestige, are not immune to economic pressures. For Kering, which relies heavily on Gucci's performance, diversifying through acquisitions remains a long-term strategy, but immediate financial sustainability has taken priority.
As the luxury market continues to fluctuate, the postponed acquisition underscores how even marquee deals must be recalibrated in light of shifting conditions. Valentino remains on the path to eventually joining Kering's portfolio fully, but the wait until 2028 ensures that the company will not be overextending itself in the present climate.
