Discussion: The State of Kering

[LadyJunon]

The incoming fate of Bottega Veneta and the current state of Kering:

Despite murmurs otherwise in the Kering offices, I’m told that Blazy’s resignation was definitive… and unexpected. All this would have been highly secretive. Typically, as part of the recruitment process, a prospective designer auditions for months. If Blazy did that, he would have had to make the time and mental space for that creative work on top of designing his most-praised collection to date at Bottega Veneta. (Remember, Simon Porte Jacquemus was said to have hired a team of something like eight people to work on his presentation for the job.)

This would all require an incredible amount of discretion and discipline, which the Wertheimers clearly value. As for whether Kering tempted him to stay, it appears that they probably had no choice but to let him go. There’s a lot of hullabaloo around non-competes in the fashion business, but the reality is that, in Italy, they can be bought out. It would have been more productive to simply wish Blazy the best and find a replacement.

I’m told that several names were bandied about as Kering began interviewing successors—including Jacquemus (poor guy can’t stay out of a creative director conversation) and Miu Miu’s Dario Vitale. However, I’m also told that the leading candidate, and likely appointee, is Louise Trotter, the current designer of Carven. Trotter, who previously worked at Lacoste and Joseph, collaborates closely with the stylist Suzanne Koller, and the Frankie Shop-meets-Old Céline aesthetic of Carven is their mind meld. She’s a grown-up commercial designer and can certainly handle managing a big team. But can she inspire the way Blazy did?

At Bottega Veneta, executives are already feeling melancholy about Blazy’s exit. After all, he is talented and professional, and designs things people want to buy. Bottega is also the only major Kering business that is growing at the moment. Alas, while the conversation over the next few weeks will be focused on Blazy’s exit and Trotter’s prospects, Bellettini and her team face other challenges, too. At Saint Laurent, new C.E.O. Cédric Charbit and creative director Anthony Vaccerello are grappling with the slowdown of that business—an inevitability with any longtime designer (what goes up must come down) but one that needs to be managed.

However, it’s the performance of Gucci, the group’s profit center, that determines how the entire thing runs. There is a hurry-up-and-wait feeling to the Gucci situation that will only be resolved by either a tremendous uptick in sales or a creative change, despite the green shoots as accessories ramp up and fresh ready-to-wear arrives in the stores. The business is significantly smaller than it was two years ago, and while everyone is sort of sick of talking about whether Sabato De Sarno will stay or go, they can’t stop talking about it, either. This is a case where money will fix everything.

Pulled from a recent Puck News article (thanks @PDFSD!)

 

[yslforever]

The incoming fate of Bottega Veneta and the current state of Kering:

Pulled from a recent Puck News article (thanks @PDFSD!)

Thanks
Very informative, but I doubt Blazy's departure is unexpected; every contract has a notice period of minimum 3 months before the renewal date.

 

[fenty]

Got my funeral attire ready, time to lay Kering to rest !

 

[justpassingthrough]

PARIS — Kering said Monday it is in talks with Italian tax authorities over a tax probe focused on its Alexander McQueen brand.

“Kering confirms that discussions are underway with Italian tax authorities regarding Alexander McQueen,” the French luxury group said in a statement, confirming a Reuters report.

“The company and the Kering group are confident about the correctness of their operating mode and are pursuing these discussions in a spirit of constructive dialogue,” it added.

Reuters quoted unnamed sources as saying that prosecutors in Florence have opened an investigation for omitted tax declarations after Italy’s financial police alleged that Alexander McQueen failed to declare between 60 million euros and 70 million euros in taxable income between 2016 and 2022.

In 2019, the conglomerate paid the Italian Revenue Agency a total sum of 1.25 billion euros to settle an investigation into its tax payments related to the sales in Italy of Gucci products between 2011 and 2017.

The investigations identified an alleged tax evasion of 1.4 billion euros. According to the Italian tax authorities, in distributing Gucci products in Italy through a directly operated Switzerland-based subsidiary named Luxury Goods International, Kering had intentionally avoided the payment of taxes in Italy.

In 2022, it settled another tax dispute, this time pertaining to Bottega Veneta, through the payment of 186.7 million euros to the Italian Revenue Agency.

Another hefty tax bill would come at a sensitive time for Kering, which has extended its arsenal of cost-cutting measures to counter an expected 50 percent drop in operating profit this year. Layoffs, store closures and contract renegotiations are all on the menu as the group seeks to right its ship after a tougher-than-expected third quarter.

Yahoo Finance:
Kering Confirms Talks With Italian Tax Authorities Over Alexander McQueen Probe

Thanks @PDFSD for bringing this to my attention!

 

[GivenchyHomme]

This is getting good.

 

[Nimsay]

Clownery at all levels.