French luxury conglomerate Kering, owned by the Pinault family, is all set to become a pure-player in luxury and wants to sell the last of its sports and lifestyle acquisitions. In a recent announcement, the company has said that it is looking to sell skate-infused streetwear brand Volcom.
In a statement from the Group, it was said: “In accordance with Kering’s strategy to fully dedicate itself to the development of its luxury houses, Volcom no longer constitutes a core asset and Kering has initiated a disposal process.”
Kering had bought Volcom in 2011 for US $ 608 million after having acquired Puma in 2007 and Cobra Golf in 2010 as a way to expand into the booming world of sportswear. However, in 2017, François-Henri Pinault exited Puma’s board and in January 2018, it was announced that Kering is selling its majority stake in Puma to focus on other higher margin brands in its portfolio.
At the time of announcing Puma’s dismissal, a press statement was released that said, “This proposal will allow us to strengthen our status as the best in the sector. Kering is aiming to continue growing and developing its ensemble of luxury houses in couture, leather goods, watches and jewellery, leveraging its higher cash flow generation and a solid financial situation.”
At the moment, Kering owns some of fashion’s biggest heritage brands in Europe including Gucci, Yves Saint Laurent, Balenciaga, Alexander McQueen, amongst several others.
Interestingly, the latest announcement coincides the actively ongoing reshuffling in progress at Kering’s direct competitor, LVMH Moët Hennessy Louis Vuitton. Both parties’ moves suggest that even luxury’s biggest giants are ‘recentralising’ their strategies to cope up with a tumultuous fashion atmosphere.
