French conglomerate Kering is doubling down on its beauty division after it issued a €750m bond.
The owner of Gucci and Yves Saint Laurent issued the single-tranche bond, which it claimed has a 4.5-year maturity and a 3.125% coupon.
The company said the investment, which is in line with the group’s active liquidity management, will “enhance Kering’s financial flexibility”.
“The great success of this issue with bond investors underscores the market’s confidence in Kering’s credit quality,” Kering said in a statement.
It follows Kering reporting a “difficult” start to the year amid ongoing struggles in the luxury market.
First quarter sales were down 14% to €3.9bn compared to the same period last year.
Kering Beauté sales bucked the trend, however, rising 6% to €71m “due to the very balanced development of Creed”.
This also included the “promising” launch of feminine fragrance Eladaria.
Wholesale revenue for its beauty business also grew 2% in the quarter.
Sales at Kering’s biggest brand, Gucci, plunged 25% on a comparable basis, while Yves Saint Laurent was down 8%.
Kering created its beauty division in 2023 to develop the beauty arms of its Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin houses.
It acquired luxury fragrance house Creed in June that year for a reported US$3.8bn, according to the Financial Times.
Kering Beauté named Nathalie Berger-Duquene the new CEO of Creed and the perfume brand reopened its London, UK, flagship store after a lavish refurbishment this month.
In October 2024, the division launched its first fragrance collection for Bottega Veneta, comprising five fragrances from the Venetian fashion house’s Creative Director Matthieu Blazy.