PARIS — Sergio Rossi is as good as sold, as far as Kering is concerned.
François-Henri Pinault, chairman and chief executive officer of the French luxury and lifestyle group, earlier this week confirmed that Kering was conducting a strategic review of the Italian luxury shoe brand. “Selling is also an option,” he said.
However, Kering’s financial document for 2014 shows that Sergio Rossi was classified among the “non-current assets held for sale and discontinued operations” in its consolidated financial statement for the year, alongside the group’s former mail order division Redcats.
Citing market sources, WWD reported Feb. 13 that Kering was quietly preparing a sale process for the Italian footwear company, confident it can get a good price.
Jean-François Palus, group managing director at Kering, said it had not mandated a bank to conduct the strategic review process, adding that this was being handled internally.
The document reveals Kering reported a net loss of 479 million euros, or $637 million, from discontinued operations during the year, of which a loss of 355 million euros, or $472 million, was related to Redcats, the sale of which was finalized in December with the disposal of its Diam and Movitex units.
“The remainder of the overall net loss from discontinued operations reported by the group in 2014 mainly comprised the net loss posted by Sergio Rossi, in particular a writedown against the residual value of the brand for 52 million euros (or $69 million),” it added.
In 1999, what was then Gucci Group acquired 70 percent of Sergio Rossi as part of an acquisition spree, eventually taking full control in 2004.
The shoe brand, founded by Sergio Rossi in the 1950s, has recently seen a revolving door of managers and designers, with creative director Francesco Russo exiting in 2013. Angelo Ruggeri replaced him.