Despite media reports that suggested the contrary, co-owner Mayhoola asserted that Valentino is not up for sale

The prominent Italian daily, Corriere della Sera, reported on Friday (Milan time) that Qatari investment fund Mayhoola and Gucci’s parent Kering are considering selling their co-owned fashion house, Valentino. This could be part of a broader review by Kering due to increasing debt and a slowdown in luxury demand. But before the news could really sink in, Mayhoola denied that such a sale was in the works. The company’s CEO Rachid Mohamed Rachid explicitly stated to Reuters that the “news is untrue”. In the same report, Kering, who bought a 30 percent stake in Valentino in 2023, declined to comment on the sale speculation. Given their debt, the underperformance of key brands, and the positive market reaction to the sale rumors, not denying the speculation allows Kering to test the waters, maintain strategic options, and avoid contradicting a narrative that is currently seen as beneficial by some investors.

Despite Mayhoola’s strong denial that Valentino is for sale, it’s reasonable to consider the possibility given Kering’s current financial situation and the luxury market’s significant slowdown. Kering has the option to buy the rest of Valentino by 2028. However, as the group is grappling with significant debt and the underperformance of brands like Gucci, making the potential multi-billion Euro acquisition of the remaining Valentino stake is irrefutably a burden. Valentino itself has seen recent revenue declines and leadership changes. While Mayhoola’s denial could be strategic to maintain brand stability and valuation, Kering’s need to de-leverage and streamline its portfolio after significant real estate acquisitions and investments in recent years, coupled with the market’s positive reaction to the sale rumors (shares initially rose by around 2.5% in early Paris trade after the news report), suggests that a divestment or a reconsideration of the full acquisition is a strong possibility, even if not yet a firm decision.

Despite Mayhoola’s strong denial that Valentino is for sale, it’s reasonable to consider the possibility given Kering’s current financial situation and the luxury market’s stunning slowdown

Kering and Mayhoola appointed Alessandro Michele as creative director of Valentino in March last year. Mr Michele is barely into his third season with the house. This apparent impatience for immediate results, or the consideration of a sale, raises questions, especially given such a significant recent investment in new creative leadership. Mr Michele’s appointment did signify long-term hope and makes Valentino a more attractive asset, but Kering’s short-term financial imperative outweighs the patience required for a dramatic turnaround, making a sale a strategic option to raise capital and reduce financial burdens. Beyond the runway, behind every pussy bow, there’s always a balance sheet.

The consideration of a sale so early into Mr. Michele’s tenure suggests Kering’s financial pressures might be overriding the patience typically afforded to a new creative vision. But the Gucci stakes are far higher. Kering’s decision to bring in Demna Gvasalia is a desperate, strategic move to salvage its most important brand. This implies their intolerance with Gucci’s continued underperformance. While Mr Gvasalia will be given the necessary time to put together his debut collection (likely to be for March 2026), the overall context suggests that Kering will be demanding signs of positive momentum and a clear path to renewed growth from Mr Gvasalia much more urgently than they might for a less critical brand in their portfolio, or one with a different ownership situation like Valentino. The clock is definitely ticking faster for Me Gvasalia’s Gucci than it was for Sabato De Sarno, his doomed predecessor.

Kering’s short-term financial imperative outweighs the patience required for a dramatic turnaround, making a sale a strategic option to raise capital and reduce financial burdens. Beyond the runway, behind every pussy bow, there’s always a balance sheet

The situation at Valentino is dynamic. While Mayhoola has denied the immediate sale talks, the underlying reasons for the media reports and the rumours are real. Even with Alessandro Michele’s proven track record at Gucci, the landscape has changed, and indefatigability is a luxury that Kering, in particular, may not have. Mr Michele’s early showings for Valentino clearly carried a strong imprint of his maximalist and historically-referential aesthetic that became his signature at Gucci. It is not clear yet if his approach for Valentino will pan out. This uncertainty is a critical factor weighing on the brand’s future, especially for its owners, Kering and Mayhoola. All the sequins have not been shine. And the last show, presented against what was conceived as a public toilet could be auspiciousness gone down the bowl.

Additionally, in May, Valentino Bags Lab Srl, a unit of the main Valentino fashion house, was placed by a Milan court under judicial administration for allegedly failing to prevent its suppliers from exploiting workers, a very real and concerning issue in the luxury manufacturing sector in Italy now. The most recent brand to be called out was purveyor of quiet luxury Loro Piana. Although the publicity surrounding Valentino’s infraction was rather muted, compared to Dior a year ago, the reputational dent to the brand is far from negligible. A significant part of luxury’s appeal is the status and social signalling it sells. Or with Valentino, a certain timeless, opulent, and unequivocally feminine glamour. Or simply put, a dream. Exploitation turns that into a nightmare, diminishing the desirability and emotional connection consumers have with the brand. Even the best of them, we keep seeing, can run out of weaving enchantments halfway through.

Updated: 19 July 2025, 09:00

File photo: Chin Boh Kay