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uxury Conglomerate Kering Faces Financial Strains Amid Gucci Slump
A high-stakes real estate deal is brewing in Milan, with the Qatar Investment Authority (QIA) reportedly eyeing a significant stake in Kering's prized Via Monte Napoleone property. The development comes as the luxury conglomerate grapples with dwindling sales at its flagship brand Gucci, exacerbating financial pressures.
Kering's recent acquisition of the Milan building for 1.3 billion euros has proven to be a costly endeavor, contributing to the group's ballooning net debt of over 10.5 billion euros by 2024. To mitigate this burden, Kering may follow in its footsteps with Ardian, transferring ownership stakes in exchange for much-needed refinancing.
The reprieve from U.S. President Donald Trump's tariffs has provided a temporary boost to Kering shares, but the company's financial woes remain a pressing concern. As it navigates these challenges, Kering is likely to explore strategic partnerships and asset sales to stabilize its finances and ensure long-term sustainability.
