Kering sells Sowind, which manages two brands of luxury watches: Girard Perregaux and Ulysse Nardin. According to information available, the French group closed a deal to shift 100% of the ownership onto the managers that now lead the activities. The closing should take place during the first half of 2022. As reported by Le Figaro, the news hides a trend, which is that even at a time where revenue is increasing exponentially, big luxury groups continue to rationalize their portfolio. There is no time (and resources) to lose.
Kering sells Sowind
It’s true that Kering will still be present in the watches segment with other brands, such as Gucci. Yet, the group shows a change in strategy from the one set in 2011, with the sale of Sowind (250 million euro in revenue, according to Barclays). Le Figaro reminds readers that, in 2011, the Pinault family tried to insert itself in a segment where it wasn’t as strong. The same one where rival Richemont is very present). Leather has a very important role in this segment. The wristbands of many luxury watches by Girard-Perregaux and Ulysse Nardin (in photo) use the material to grow the desirability of the item for consumers.
Rationalization
After the hit from Covid-19, the financial results of luxury groups are once again positive, and have been since Spring of 2020, before taking off in 2021. That being said, rationalizing portfolios continues to be important, as shown by Kering. LVMH is also moving in the same direction, as the group has “discreetly sold Thomas Pink (shirts) and Nicholas Kirkwood (footwear) – concludes Le Figaro –, as well as having interrupted activities tied to Fenty, the luxury brand launched with Rihanna”.
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