By
Reuters API
Published
Nov 5, 2022
Download
Download the article
Print
Text size

Kering shares up on report company seeks to buy Tom Ford

By
Reuters API
Published
Nov 5, 2022

Shares in Gucci-owner Kering rose in early Friday trading following a report the French luxury goods company is in advanced talks to buy U.S.-based fashion label Tom Ford.

Tom Ford - Spring-Summer2023 - Womenswear - New York - © PixelFormula


Shares were up 2.4% in morning trade, after the Wall Street Journal on Thursday reported the company was the front runner for a deal, with rivals including Estee Lauder.

Kering has been the focus of persistent M&A speculation, with the recent underperformance of its star label Gucci - which accounts for the bulk of group profits - putting it under market scrutiny after years of stellar growth.

"The logic is compelling," said Piral Dadhania of RBC, of such a deal, citing Tom Ford's past as creative director of Kering labels Gucci and Yves Saint Laurent in the nineties, as well as the label's high positioning.

The French group has complementary expertise to further develop the label's offer in womenswear and leather goods, added Dadhania.

© Thomson Reuters 2024 All rights reserved.