Quick one today as about to board a boat (hard knock life). Sabato is out at Kering-owned Gucci. Accreative for the fashion conglomerate as Sabato’s designs were always “nice” but never had “it”. Read-through: expect poor sales as co writes off old stock (you don’t think they’re going to have a 70% red dot sale, do you??) but also expect the co to look for a heavyweight designer who can do the house justice. Remember Gucci always works like this — they hire a dud and then find a Tom Ford.
Long-term good for the stock — a good designer will go a long way. Remember also that Pinault owns CAA, and all the “celebs” this season have been wearing YSL, McQueen, etc… it’s a genius product placement move. Expect also some closures of second-tier stores … good (eventually) for the bottom line…
Market tends to think of Kering as a Gucci story, but that underestimates YSL, Bottega etc. They’re little powerhouses. As of today Kering still at a good discount to peers – 14x earnings – stock up 3% on the news … market likes this.
Source post: Blackbull Research - Substack