S hares in Kering, the multibillion-euro business home to the likes of Gucci and Yves Saint Laurent, are decidedly out of fashion. The Paris-listed stock has lost roughly two fifths of its value in the year to date, as it struggles to win over wealthy spenders with its latest styles. Yet the company remains a popular holding among some of the biggest and most influential investors in the world, including the Scottish Mortgage Investment Trust.
So does the sell-off represent a buying opportunity in a world-class brand, or does it allude to a more existential issue at the 62-year-old business? Gucci, Kering’s flagship brand, has been at the heart of its woes. The Italian fashion house is heavily reliant on status-seeking clients, as well as Chinese.