Core Viewpoint - Kering's third-quarter 2025 financial results indicate a reduction in the slump experienced in the previous quarter [1] Financial Performance - Kering reported its third-quarter 2025 financial results, showing improvement compared to the previous quarter [1]

Core Viewpoint - Shares in Kering, the owner of Gucci, experienced a significant increase following the announcement of better-than-expected sales at its flagship brand, indicating a potential turnaround for the company [1] Group 1: Company Performance - Kering reported improved sales figures for Gucci, which exceeded market expectations, contributing to a surge in the company's stock price [1] - The positive sales performance at Gucci has raised optimism among investors regarding a long-awaited turnaround for Kering [1] Group 2: Market Reaction - The surge in Kering's shares reflects increased investor confidence in the luxury brand's recovery and future growth prospects [1]

Core Viewpoint - Kering's shares rose over 9% following a narrower sales decline and better-than-expected quarterly earnings Group Performance - Kering reported third-quarter sales of 3.42 billion euros ($3.97 billion), reflecting a 5% decline on a comparable basis year-on-year, an improvement from a 15% decline in the second quarter [2][4] - The company had anticipated group sales of 3.31 billion euros for the quarter, indicating a stronger performance than expected [4] Brand Performance - Sales at Gucci, Kering's largest brand, fell 14% year-on-year on a comparable basis to 1.34 billion euros, although smaller brands showed improvements that mitigated the overall impact [3] - The decline in Gucci's sales represented a significant sequential improvement from the previous quarter, where sales had dropped 25% [3][4] Currency Impact - Kering noted that currency fluctuations posed a "significant headwind," contributing to a 5% negative effect on sales [5] Management Commitment - CEO Luca de Meo emphasized the company's commitment to improving performance, stating that the third-quarter results, while better sequentially, were still below market expectations [5]

Core Insights - Kering Group reported third-quarter revenue of €3.42 billion, a year-on-year decline of 10%, slightly above analyst expectations of €3.31 billion, marking the first time in five quarters that results exceeded expectations [1] - Same-store sales decreased by 5%, a significant improvement from the 18% decline in the previous quarter [1] - The core brand Gucci experienced a 14% decline in same-store sales, but the decline narrowed by over 40% quarter-on-quarter and was slightly better than analyst expectations [1] - North America saw a 3% increase in same-store sales, reversing the previous two quarters of double-digit declines [1] - The new CEO acknowledged that performance remains well below market averages but expressed commitment to improving the situation [1]

Core Insights - The company reported a 10% decrease in revenue for the third quarter [1] Group 1 - The revenue decline is part of the company's efforts to build momentum under the leadership of Luca de Meo [1]

Core Insights - Kering Group and L'Oréal Group have announced a long-term strategic partnership in the luxury beauty and health sector, involving L'Oréal's acquisition of the Creed brand and licensing agreements for Kering's renowned brands, with a total deal value of €4 billion (approximately ¥33.2 billion) [1][4][6] Group 1: Strategic Partnership Details - The partnership includes Kering selling its beauty business, including the Creed brand, to L'Oréal, along with a 50-year licensing agreement for Kering's iconic perfume stores [5][6] - Creed, a historic perfume brand founded in 1760, was acquired by Kering for €3.5 billion just four months prior to this new deal [5][6] - L'Oréal will also gain exclusive rights to develop, produce, and distribute Gucci's beauty products, as well as create and distribute fragrances for Bottega Veneta and Balenciaga under a separate 50-year licensing agreement [6][7] Group 2: Financial Context and Implications - Kering is under pressure from both debt and performance issues, with a reported 62% decline in net profit and a net debt of €9.5 billion as of June 2025 [7][8] - The sale of Creed and other businesses is seen as a way for Kering to alleviate financial pressure and refocus on its core strengths [7][8] - L'Oréal's acquisition of Creed is part of its broader ambition to become a major player in the fast-growing high-end perfume market, following several strategic acquisitions in recent years [7][8][11] Group 3: Market Position and Future Outlook - L'Oréal's recent acquisitions, including Aesop for $2.525 billion (approximately ¥17 billion), highlight its aggressive expansion strategy in the luxury beauty sector [8][11] - The partnership is expected to solidify L'Oréal's position as the world's largest luxury beauty company and explore new opportunities in the health sector [11][12]

Core Viewpoint - L'Oréal Group is set to establish a long-term strategic partnership with Kering Group in the high-end beauty and health sector, involving the acquisition of the Creed brand and licensing agreements for several luxury brands' beauty and fragrance products [1] Group 1: Acquisition Details - The agreement includes the acquisition of the Creed brand and licensing for Kering's iconic brands such as Bottega Veneta and Balenciaga for a duration of 50 years [1] - Gucci will join the partnership after the conclusion of its licensing agreement with Coty Group [1] - The total value of the agreement is estimated at 40 billion euros, with the transaction expected to be completed in the first half of 2026 and paid in cash [1]

Core Viewpoint - Kering Group announced an agreement with L'Oréal Group for the sale of its beauty division for €4 billion, marking a significant strategic shift for Kering [1] Group 1: Transaction Details - L'Oréal will acquire Kering's beauty business, which includes the Creed brand and a 50-year license for several luxury brands such as Bottega Veneta and Balenciaga [1] - Gucci will join the agreement after the expiration of its licensing period with Coty Group [1] - The transaction will be a cash payment and is expected to be completed in the first half of 2026 [1] Group 2: Financial Performance - Kering's beauty division reported annual revenue of €323 million for 2024, primarily driven by the Creed brand [1]

Core Viewpoint - Kering SA is in negotiations to sell its beauty business to L'Oréal SA for approximately €4 billion ($4.7 billion), marking a strategic move by new CEO Luca de Meo to address challenges facing the luxury brand [1][2]. Group 1: Company Actions and Leadership Changes - The potential sale of Kering's beauty division would be the first major strategic decision under CEO Luca de Meo, who recently took over from Francois-Henri Pinault [2]. - Kering's beauty division was launched in 2023, following the acquisition of cologne maker Creed for an estimated €3.5 billion, aimed at enhancing its beauty platform [4]. - The previous CEO, Francois-Henri Pinault, announced his resignation after a series of profit warnings, with the Pinault family holding a 42% stake and 59% of voting rights in Kering [3]. Group 2: Market Context and Challenges - The discussions for the sale come amid a slump in Chinese demand and the potential impact of higher US tariffs on Kering's business [2]. - The deal could be announced as early as next week, although there is a possibility that negotiations may not reach a conclusion [1].

Core Insights - Kering, the parent company of luxury brands like Gucci and Saint Laurent, confirmed a cyberattack in April that compromised consumer data of potentially millions of customers [1][4] - The hacker group Shiny Hunters claimed responsibility for the breach, stating they have access to 7.4 million unique email addresses [3] - Kering has assured customers that no financial data was stolen, but critical personal information such as names, email addresses, and phone numbers were compromised [2][3] Cybersecurity Threats - The luxury sector is increasingly targeted by cybercriminals, with recent attacks on other major brands like LVMH and Chanel highlighting the vulnerability of high-end retailers [5][6] - The nature of luxury clientele, with spending ranging from $10,000 to $86,000, makes their data particularly valuable for scams and extortion [6] - Cybersecurity is a significant concern for luxury brands, impacting business continuity and brand reputation [9] Financial Impact - Kering reported a 16% decline in sales to $9 billion (€7.6 billion) in the first half of 2025, following a 12% drop to $20.4 billion (€17.2 billion) the previous year [10] - The luxury industry is anticipating a sales decline of 2% to 5% this year, compounding the challenges faced by Kering [10] Technology Investment - Luxury brands are investing more in customer-facing technology (40%) compared to cybersecurity (21%), which may leave them vulnerable [7] - A significant portion of technology investments is directed towards external vendors (68%), potentially creating security risks [7]