Kering Acquires 30% Stake in Valentino Amid Gucci Sales Slump

French luxury group Kering is purchasing a 30% stake in Italian fashion label Valentino from Qatari investment fund Mayhoola for 1.7 billion euros ($1.87 billion) in cash. The deal includes an option for Kering to acquire the entire share capital of Valentino by 2028. Kering, which missed market forecasts for second-quarter sales, aims to revive its struggling brand Gucci. The purchase is part of a broader strategic partnership between Kering and Mayhoola, potentially leading to Mayhoola becoming a shareholder in Kering. Kering's North American retail revenue fell 23% in Q2, while Gucci sales only grew by 1%, compared to double-digit growth from competitors like LVMH. The stake purchase is expected to be completed by the end of the year.