Discussion: The State of Kering

[plentyofhorns]

Kering Deepens Austerity Measures as Profit Outlook Worsens​

wwd

So little forethought with their rapid store expansion in Asia. They spent so much and are now closing them lol. Kering really just thinks quarter by quarter

 

[Abracai]

I'm curious, why does Kering release sales reports for individual brands, unlike LVMH?

Because Lvmh does hidden promotions to keep up the sales with consensus so they don't want to disclose margins or quality of earnings. Otherwise analyst would discover they are severely diluting most of their brands

 

[Abracai]

Because they are much smaller and not so many divisions, Kering is luxury fashion & leather goods only, while half of LVMH is jewelry (Bulgari, Tiffany's), distribution, alcohol, watches too.

They provide datas by sector (alcohol, jewelry, fashion and leather) but not by single brands.
It's not because they are bigger, even Kering don't disclose all the brands but the most important ones.
Lvmh don't do it so they can get away with lower quality of earnings and no margins disclosure. That's because they do several hidden sales promotions on selected items and locations hence diluting brands.

 

[Monsieur Cristobal]

The faith they have in Sabato de Sarno and the turnaround of Gucci is getting quite ridiculous at this point. I don't know what more proof they need that it's just not going to work?

His contract is either airtight or they are waiting for a free agent because no other explanation makes sense.

My thoughts: we are going to have Sabato at least two years.
Replacing him now would send the information that Gucci is a mess. That would be fatal.
Remember those two years at Lanvin after Alber was fired, with Bouchra coming in, then quitting, then another guy, then...?
Would you invest in such a chaos?

Keep Sabato. Surround him with efficient, clever, focused, top professionals.
Gucci is right now like a historical protected building. Do whatever you want inside but don't touch the fassade.

The imperial phase at Balenciaga had Nicolas at the helm, but let's not forget that Bouchra Jarrar, Charlotte Chesnais, Antonin Tron, Julien Dossena, Bruno Sailleli, Pierre Hardy... were working with him.
A talented team can do wonders.

As I see it, it is either that or more musical chairs, more confusion, more insecurity and more struggle.
And Gucci struggling is... sad.