Business of Luxury | Earnings Update | Kering Before the Q3 Print | Selling the Fragrance, Spending the Myth

Kering has raised cash by selling its beauty business on 50-year terms, while Gucci keeps changing creative direction and the wider industry pays the bill for a decade of marketing over making. A view ahead of the third-quarter release on 22 October. We do not think the market is wrong to be cautious. The beauty sale has repaired the balance sheet but narrowed Kering's future, and the group is still trying to fix a product problem with creative ap‐ pointments and marketing. Until Gucci shows sustained growth at full price, and Saint Laurent's transition is settled, we see the recent drawdown as a fair reflection of the risks rather than an obvious dislocation.

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