Today (May 21), CHAILEEDO has learned that Kering Group has issued a single-tranche bond totaling 750 million euros. This strategic move aims to enhance financial flexibility and support its expanding beauty portfolio.
According to an announcement on Kering Group’s official website, the single-tranche bond carries a coupon rate of 3.125% and has a maturity of 4.5 years. Foreign media reported that this issuance aligns with Kering’s proactive liquidity management strategy, providing the group with additional resources to invest in its high-end beauty business. The successful issuance reflects investor confidence in Kering’s credit quality, further supported by Standard & Poor’s long-term “BBB+” rating.
Public information shows that Kering Group is a global family-owned luxury conglomerate whose products span ready-to-wear, haute couture, leather goods, jewelry, eyewear, and beauty. Its brands include Gucci, Saint Laurent, Bottega Veneta, and Balenciaga.
According to the financial report, in the first quarter of this year, Kering Group’s total revenue declined by 14% to 3.883 billion euros, showing a double-digit decline both on a reported and comparable basis. This revenue performance fell significantly short of analysts’ previous expectations of 4.09 billion euros and exceeded the anticipated decline of 11.9%.
It is worth noting that while several of Kering’s brands underperformed, its eyewear and beauty segments continued to grow. Specifically, during the reporting period, its eyewear and beauty business achieved total revenue of 558 million euros, a year-on-year increase of 4%.
Among them, the beauty division (Kering Beauté) recorded revenue of 71 million euros, an 8% year-on-year increase. This growth was mainly driven by the launch of a new women’s fragrance by Creed. In addition, the financial report disclosed that Kering Group is preparing for the upcoming launch of new products from Balenciaga.
