The logo of French luxury group Kering is pictured in...

The logo of French luxury group Kering is pictured in Paris, France, on Sept. 15, 2017. French luxury conglomerate Kering has reached a cash deal to purchase a 30% stake in Italian fashion house Valentino for 1.7 billion euros from a Qatari investment firm. Under the deal announced Thursday, July 27, 2023, Kering has the option to buy 100% of Valentino no later than 2028. Credit: AP/Michel Euler

MILAN — French luxury conglomerate Kering has reached a cash deal to purchase a 30% stake in Italian fashion house Valentino for 1.7 billion euros from a Qatari investment firm.

With the purchase, Kering is seeking to shore up its revenue stream as it struggles to turn around former powerhouse Gucci. Kering on Thursday reported first-half revenues of 10.1 billion euros, up 2%, as Gucci sales stagnate.

Under the deal announced Thursday, Kering has the option to buy 100% of Valentino no later than 2028. The partnership could lead to the Qatari investment firm, Mayhoola, becoming a shareholder in Kering, as well as other potential “joint opportunities,” the statement said.

Kering Chairman and CEO Francois-Henri Pinault expressed admiration for “the evolution of Valentino under Mayhoola ownership,” which Kering said turned Valentino “into one of the most admired luxury houses in the world.”

“I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation,’’ citing the role of Valentino CEO Jacopo Venturini, who “will continue to lead.”

Gucci, which accounts for nearly half of Kering revenues, is in the throes of a relaunch, with a new management team and a new creative director, Sabato De Sarn o, who will unveil his first collection during Milan Fashion Week in September.

Valentino, founded by Valentino Garavani in 1960, recorded revenues of 1.4 billion euros in 2022. Pierpaolo Piccoli has been creative director at Valentino since 2008, working alongside Maria Grazia Chiuri from 2008-16. With its corporate base in Milan and design studio in Rome, the fashion house is a mainstay of Paris fashion week with its womenswear and couture collections while recently returning menswear to Milan.

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