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.

 

[PDFSD]

Fabio Z is right there… but I guess he knows his worth to say no to Gucci. 😅

also having your ex as your boss might be a no go lol

 

[PDFSD]

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.

Gucci in its Balenciaga x Wang years :-)

I think from January 2025 first quarter of the year will mark if it will be more of ancora or no more ancora

but i disagree that adding a team around a person like Ancora guy will turn things around to the extent that it will be a successful tenure.

there is no vision!!!!!! no matter who you put there to feed it or maximize it, you see Nicolas continue at LV and is still successful, while the team moved on with lesser success besides P Hardy at Hermes being comfortable.

A creative director has to have a vision that resonates so clear and profoundly to cause a shift in culture or be part of the zeitgeist.

It's like trying to make Philipp Plein become Miuccia Prada by installing a whole crew of designers and art directors and merch & marketing teams in order to have same level outcome.

At a point potential just turns into simply impossible.

 

[jeanclaude]

Replacing him now would send the information that Gucci is a mess. That would be fatal.

Gucci is a mess since Ancora Guy arrived, that´s not a secret, everybody knows that. They are already into the "fatal phase".
It´s worst keeping him, because he is a lost cause; and all they are going to achieve from him is killing Gucci´s image more and more. So it is better to replace him asap, because someone new could give hope to investors. With Sabato Gucci is doomed. Like the Titanic and the iceberg...

 

[jeanclaude]

imgflip.com

 

[TerraVera]

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

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.

interesting! in regards to fashion and jewelry, can you please expand on this and give examples? specifically with dior, lv, tiffanys, and others? or are you talking about their spirit (alcohol) brands?

they let off white go, which i thought was a smart decision. there was no way that brand could sustain itself.

what do you believe is the real valuation of certain LVMH brands? and comparably to kering, is the group in bad shape and just keeping up a facade that it's a powerhouse train moving forward with lots of fuel in its tank? how badly are they wounded, too?

 

[Monsieur Cristobal]

in better shape than Kering and Burberry, because their portfolio is more diverse.
They have Sephora and strong cosmetics and beauty brands, like Guerlain and Dior.
They have alcohols, press, even yatches I think...

But it is not an easy time for almost everybody in the luxury world.

 

[yslforever]

no

 

[LadyJunon]

no

Ok, so we did a switch so Charbit destroy Saint Laurent while the YSL deputy has to pick up the pieces after him at Balenciaga. Kering needs to collapse already.

 

[fenty]

Mass Exodus coming for Kering

 

[GivenchyAddict]

I really can't stand them. They are so... dumb.