Core Insights - Kering and Mayhoola have agreed that the ownership structure of Valentino will remain unchanged until at least 2028, reflecting a strategic partnership aimed at supporting Valentino's long-term success [1][4]. Ownership Structure - The amendment to the shareholders' agreement follows Kering's acquisition of a 30% stake in Valentino for 1.7 billion euros in 2023, as part of a strategic partnership with Mayhoola [2][3]. - Kering had the option to acquire 100% of Valentino by 2028, while Mayhoola could become a shareholder in Kering, with the final purchase price dependent on Valentino's performance [3]. Financial Implications - The postponement of Mayhoola's put options for its remaining 70% stake in Valentino to 2028 and 2029 allows Kering to defer additional debt, which is crucial given Kering's net debt increase from 200 million euros in 2021 to approximately 10.5 billion euros by the end of 2024 [5]. - Kering will need up to 3.4 billion euros in cash to acquire the remaining stake in Valentino [5]. Valentino's Performance - Valentino's revenues for 2024 decreased by 3% to 1.31 billion euros, with a 2% decline at constant exchange rates. However, direct retail, including e-commerce, improved by 5% and accounted for 70% of revenues [6]. - The brand has been reducing its wholesale channel by about 20% in 2024, a strategy that is expected to continue into 2025, potentially leading to double-digit revenue declines for the year [7].

Group 1 - Kering will not fully acquire Italian fashion brand Valentino until at least 2028, marking a significant decision under new CEO Luca de Meo [1][2] - The delay in the acquisition is part of Kering's strategy to manage its substantial debt of 9.5 billion euros ($11.13 billion) [2][5] - The current ownership structure of Valentino will remain unchanged until at least 2028, with options for Kering to acquire the remaining 70% stake postponed to 2028 and 2029 [3] Group 2 - The full acquisition of Valentino was initially estimated to cost Kering around 4 billion euros, but this figure may vary based on the brand's performance [4] - Valentino's revenue declined by 2% to 1.3 billion euros, and its core earnings (EBITDA) fell by 22% to 246 million euros last year [5] - CEO de Meo emphasized the need to reduce debt and costs, and to rationalize and reorganize some brands, indicating a challenging path ahead [6]

Take a look at shares of Coach and Kate Spade owner Tapestry up nearly 60% this year alone. Although shares under some pressure today as the company holds its investor day here in New York City. It announces a new growth strategy calling it amplify.The company now targeting revenue growth of mids single digits annually through fiscal 2028 after delivering record revenue of 7 billion last year. I got a chance to speak with the CEO Joanne Kbiserat in a first on CNBC interview where we discussed Tapestry's mes ...

Core Viewpoint - Roberto Lorenzini is stepping down as CEO of Tod's Group for the Americas, a decision made in mutual agreement with the Della Valle family, the owners of the company [1] Group 1: Leadership Transition - Lorenzini has led the organization for over a decade and expressed pride in the accomplishments during his tenure, including resilience during challenging times and new growth strategies [2] - The Della Valle family praised Lorenzini for his significant contributions to the company's growth in the U.S., including building a strong team and navigating challenges like the pandemic [2] - Lorenzini will continue to support the company in an advisory capacity during the transition to ensure continuity and sustained momentum [4] Group 2: Business Performance - In 2023, revenues in the Americas reached 85 million euros, reflecting a 3.5 percent increase from 2022, which accounted for 7.6 percent of total sales of 1.12 billion euros [4] Group 3: Background of Lorenzini - Prior to joining Tod's, Lorenzini held various leadership roles in luxury retail, including positions at Etoile Group, Sixty USA, and Versace USA, as well as earlier roles at Fendi, PricewaterhouseCoopers, and Deloitte & Touche [3]

Donald Trump Attends U.S. Open Final As A Guest Of Rolex—Despite Switzerland Tariffs (Photos)https://t.co/d4rSTxU0Vw https://t.co/AhmWiErWbJ ...

Trade & Tariffs - Swiss watchmakers anticipate a US tariff deal to avoid inventory shortages in America [1]

Market Overview - U.S. equity markets closed higher, driven by optimism over potential monetary easing despite concerns about softening labor data [1][2] - The S&P 500 rose by 0.83% to 6,502.08, the Nasdaq Composite increased by 0.98% to 21,707.69, and the Dow Jones Industrial Average gained 350.06 points, or 0.77%, to settle at 45,621.29 [1] Economic Data - The ADP private payrolls report indicated only 54,000 jobs were added in August, significantly below the revised 106,000 jobs in July, suggesting a slowdown in job creation [2] - Despite the weak employment numbers, stock prices increased as traders interpreted the data as supportive of a potential rate cut by the Federal Reserve [2] Focus on Financially Resilient Stocks - In the current macroeconomic environment, it is crucial to focus on companies with strong financial fundamentals beyond just sales and earnings [3] - A critical analysis of a company's financial background, including coverage ratios, is essential for informed investment decisions [4] Interest Coverage Ratio - The Interest Coverage Ratio is a key indicator of a company's ability to pay interest on its debt, calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5][6] - Companies with strong interest coverage ratios, such as Vertiv Holdings, Stride, Ralph Lauren, and The Cheesecake Factory, are highlighted for their financial resilience [10] Company Performance - Vertiv Holdings: Zacks Consensus Estimate indicates sales and EPS growth of 24.5% and 34% respectively, with shares advancing 75.2% in the past year [14] - Stride, Inc.: Expected sales and EPS growth of 11% and 5.9% respectively, with a stock increase of 104.1% in the past year [15] - Ralph Lauren Corporation: Anticipated sales and EPS growth of 6% and 19.8% respectively, with shares rising 85.6% in the past year [16] - The Cheesecake Factory: Projected sales and EPS growth of 5.1% and 9.6% respectively, with a stock increase of 63.1% in the past year [17]

Company Performance - Kering, owner of Gucci, is at one of the lowest points in its history [1] - Francois-Henri Pinault's two-decade-long reign at Kering is ending [1]

Breaking: Giorgio Armani, the designer and business mogul who brought subtle Italian luxury to the world stage and conquered Hollywood, has died. He was 91. https://t.co/pzBbemun5y ...

Group 1 - Burberry is set to re-join the U.K.'s FTSE 100 index later this month, one year after being relegated from it [1] - The upgrade is part of a quarterly reshuffling at the London Stock Exchange Group (LSEG) and reflects Burberry's recovery under CEO Joshua Schulman's leadership [1] - Burberry shares were down approximately 1.1% by 8:40 a.m. London time [2] Group 2 - Burberry fell out of the FTSE 100 in September 2024, ending a 15-year presence in the index [2] - The company will return to the FTSE 100 alongside Metlen Energy & Metals, with changes effective from September 22 [2] - Homebuilder Taylor Wimpey and student accommodation business Unite Group will exit the FTSE 100 and move to FTSE 250 [3]