MILAN — Kering’s new course continues to take shape.
A day after the luxury group’s combined general meeting and the first public appearance of chief executive officer Luca De Meo, the French company and Mayhoola jointly announced that the current ownership structure of the Valentino house will not change before 2028 at the earliest.
This represents an amendment to their shareholders’ agreement, inked at the time of Kering’s acquisition of a stake in Valentino in 2023.
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Two years ago, Kering bought a 30 percent stake in Valentino for 1.7 billion euros in cash as part of a broader strategic partnership with the Qatari investment fund.
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As per that original deal, the French group had an option to buy 100 percent of Valentino’s capital by 2028, while Mayhoola could become a shareholder in Kering, with the final purchase price linked to the Italian fashion brand’s performance.
Following the new agreement, Mayhoola’s put options on Kering exercisable in 2026 and 2027 for its remaining 70 percent stake in Valentino are now postponed to 2028 and 2029, respectively. Kering’s call option to acquire Mayhoola’s stake in 2028 is also deferred to 2029.
“Kering and Mayhoola confirm their strategic partnership to support the development of the iconic Italian luxury house and remain entirely committed to its long-term success,” the two companies said jointly on Wednesday.
According to Bernstein analyst Luca Solca, Kering will need up to 3.4 billion euros in cash to pay for the remaining 70 percent. The postponement allows Kering to put off extra debt. According to the bank, Kering’s net debt rose from 200 million euros in 2021 to about 10.5 billion euros at the end of 2024 as the French group embarked on a major M&A and capex spree, buying Creed, Maui Jim and prime chunks of real estate.
Valentino’s 2024 revenues decreased 3 percent to 1.31 billion euros. At constant exchange rates, the decrease stood at 2 percent, while the Roman fashion house trumpeted that its direct retail, including e-commerce, improved 5 percent last year and represented 70 percent of revenues.
Valentino has been streamlining its wholesale channel, reduced by about 20 percent in 2024, a strategy that continued in 2025 and that is expected to impact its year-end performance. It is understood the brand is tracking double-digit revenue declines in 2025, making it unfavorable for Mayhoola to exercise its put option in 2026.
Last year, Valentino’s earnings before interest, taxes, depreciation and amortization fell 22 percent to 246 million euros, affected by “non-recurring items.”
To curb its debt, Kering is undertaking a major restructuring that includes store closures, selling real estate and reducing wholesale activity to improve profitability.
For example, in January, Simon Property Group bought 100 percent of Kering’s The Mall Luxury Outlets, which it established in 2001. The Mall operates two outlet centers in Italy — one near Florence in Leccio and another on the Italian Riviera in Sanremo. The deal netted Kering proceeds of about 350 million euros.
Changes are also taking place at Valentino. Riccardo Bellini, managing director of Mayhoola, was appointed CEO of the Rome-based couture house, effective Sept. 1, succeeding Jacopo Venturini, who spent five years in the role. Venturini appointed former Gucci creative director Alessandro Michele to the same role at Valentino in March 2024, following the exit of Pierpaolo Piccioli, who is making his debut at Kering’s Balenciaga brand this fall. Michele’s next collection for Valentino will be unveiled in Paris for spring 2026 with a show on Oct. 5.
Bellini engineered turnarounds at Chloé and Maison Margiela. Prior to Margiela, he was executive vice president of branding at Diesel and Diesel Black Gold and chief marketing officer at Diesel.
Mayhoola, an investment vehicle linked to the royal family of Qatar, acquired Valentino in 2012, Pal Zileri in 2014, Turkish luxury department stores Beymen in 2015 and Balmain in 2016.
De Meo officially starts as CEO of Kering on Sept. 15. The former Renault CEO told Kering shareholders he would present a detailed strategy next spring, but will start implementing his turnaround plan for the ailing French luxury group before the end of this year.