Kering secures USD 850.5M bond to boost growth in its beauty portfolio

FRANCE – Kering, a French multinational holding company specializing in luxury goods , has issued a €750 million (USD 850.5 million) million bond as part of its strategy to strengthen its presence in the luxury beauty and personal care sector. 

This strategic plan aligns with the company’s active liquidity management, ensuring financial flexibility to support its growing beauty division, Kering Beauté.

The bond carries a 3.125% interest rate and has a 4.5-year maturity, reflecting strong investor confidence in Kering’s financial status. 

The bond issuance is expected to fund various initiatives within Kering Beauté, which oversees the development and management of beauty lines for the group’s fashion brands, including Bottega Veneta, Balenciaga, and the recently acquired high-end fragrance house, Creed. 

However, Kering has not disclosed specific spending plans, the proceeds could be directed toward product development, marketing efforts, and potential acquisitions.

The company holds a BBB+ credit rating from Standard & Poor’s, indicating a relatively low-risk investment.

This plan comes after the company recently appointed Mehdi Benabadji as the new CEO of Ginori 1735 and Federico Arrigoni as the CEO of Brioni, effective May 6, 2025. 

Benabadji, who previously led Brioni since 2020, brings extensive experience in strategic transformation and international brand development, positioning Ginori 1735 for its next phase of global expansion. 

Arrigoni, formerly Deputy CEO and Asia Pacific President of Saint Laurent, steps into his new role at Brioni with a strong background in commercial operations and brand positioning, aiming to further elevate the luxury menswear house. 

Both leaders will report to Kering’s senior executives as they drive their respective brands forward.

Recently, Kering reported €17.2 billion(USD 19.47 billion) in revenue for 2024, reflecting a 12% decline compared to the previous year. 

Wholesale revenue also declined by 22%, as Kering continued to refine its distribution strategy to enhance exclusivity.

The group’s recurring operating income fell 46% to €2.6 billion(USD 2.94 billion), resulting in a 14.9% operating margin, down from 24.3% in 2023. 

Net income attributable to the group amounted to €1.1 billion(USD 1.25 billion), marking a significant decrease from the previous year. 

Despite these setbacks, Kering maintained strong financial discipline, generating €1.4 billion(USD 1.59 billion) in free cash flow, which increased to €3.6 billion(USD 4.08 billion) when excluding real estate transactions. 

Gucci, Kering’s flagship brand, experienced a 23% revenue decline, bringing in €7.7 billion(USD 8.72 billion) for the year. 

Sales from its directly operated retail network, which accounts for 91% of total revenue, dropped 21%, while wholesale revenue fell 28%. 

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