PARIS — Kering, already hit by slowing demand for luxury, said Wednesday that its planned disposal of La Redoute and one-off charges at Puma would send its net income “down very significantly” in 2013 versus a year ago.
It is understood Kering plans to inject hundreds of millions of euros to recapitalize La Redoute before selling the struggling catalog retailer.
Kering said members of its board of directors met on Wednesday to examine offers for La Redoute and would announce its conclusions “soon.” It is understood the two potential buyers are an Anglo-Saxon investment fund and a French industrial player with real estate and retail interests.
“Kering plans to select the best option that will continue transforming La Redoute and ensure its future and development, in the interests of the company, its employees and the region where it is based,” the company said.
As reported, the disposal of La Redoute, expected to be accompanied by “significant” job losses, has unleashed a maelstrom of criticism in France, beset by high unemployment and moribund economic growth.
Earlier this week, Kering disclosed it has invested more than 400 million euros, or $535 million at current exchange rates, over the past five years in La Redoute.
The company, controlled by France’s Pinault family, is selling La Redoute as part of a broader plan to exit retail to focus on fashion and accessories in the luxury and sport/lifestyle segments.
The French parent of Gucci, Bottega Veneta, Boucheron, Alexander McQueen, Volcom and other brands had not given precise guidance for 2013 results andunderlined that the factors are non-recurrent and don’t impinge on its “confidence in the solidity of its operating performance for the year.”
As reported, the one-off, mainly non-cash charges at Puma amount to about 130 million euros, or $174.3 million at current exchange, to be booked in the fourth quarter.
Kering is expected to report full 2013 results in mid February.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast