Thomas Chauvet

Thomas Chauvet inquired about the Gucci leadership transition, including the key priorities for the interim CEO and the expected duration. He also asked about the sensibility of H2 2023 consensus estimates for Gucci's revenue and margin, and the strategic rationale behind the 30% stake acquisition in Valentino, including its portfolio fit and potential synergies.

Answer

Chairman and CEO François-Henri Pinault explained that Jean-François Palus's interim role at Gucci is to ensure immediate operational efficiency for the brand's relaunch, with a search for a permanent CEO to begin in the fall. CFO Jean-Marc Duplaix stated that while H1 margin is a fair proxy for Gucci's full year, the company will not hesitate to invest to reignite growth, even if the path isn't linear. Regarding Valentino, Pinault highlighted its complementary high-end positioning and the broader strategic partnership opportunities with Mayhoola.

Thomas Chauvet asked about Gucci's progress in rebalancing towards classic collections, the potential for Kering Eyewear to expand into related activities, and whether the industry is seeing a broader trend towards more classic aesthetics.

Answer

François-Henri Pinault (Chairman and CEO) confirmed Gucci's rebalancing is on track, highlighting new travel and men's collections. Jean-Francois Palus (Group Managing Director) noted Kering Eyewear is focused on integration but sees long-term potential for expansion, such as using Maui Jim lenses in Gucci frames. Pinault addressed the fashion trend by stating Balenciaga's evolution towards craft is an acceleration of its existing strategy, not a rupture.

Thomas Chauvet of Citi asked about the criteria for Kering versus its holding company Artemis making fashion-tech investments. He also inquired about plans for the next share buyback tranche and the financial health and capital needs of the watch division, amid divestment speculation.

Answer

CFO Jean-Marc Duplaix explained that Kering invests in tech for strategic collaboration and learning, while Artemis makes purely financial investments. He stated it was too soon to comment on the next buyback tranche. Regarding watches, he celebrated their return to year-on-year growth but acknowledged Kering is a small market player and is keeping 'all the options open' for the division's future.

Thomas Chauvet asked for an explanation of the retail channel's slowdown in October, an update on OpEx and gross margin guidance, and the status of finding a partner for the YOOX Net-a-Porter stake.

Answer

CFO Gary Saage stated there was no single factor for the October retail slowdown but emphasized the year-to-date strength, noting strong summer sales in Europe driven by American tourists. He maintained the full-year gross margin guidance of 65% and provided updated expectations for S&D and admin expenses. Regarding YOOX Net-a-Porter, he indicated it was too early to discuss partners, with a capital increase being the immediate next step.