Valentino: A Bond Move to Secure the Alessandro Michele Era
As the luxury industry navigates a period of turbulence marked by a normalization of global demand, Valentino is pursuing a path of financial consolidation. The Rome-based fashion house is preparing to launch a €450 million bond issue to restructure its bank debt. This decision, approved by the board of directors in late June, calls for the issuance of “senior secured” bonds by the end of August.
This fundraising effort is part of a broader refinancing plan. Last year, the brand had already had to ask its shareholders for a capital injection after breaching certain debt covenants related to its bank debt. The new funds will not only be used for the early repayment of debt but will also support the brand’s working capital needs and strategic investments.
Shareholders’ unwavering support in the face of operational challenges
To reassure the markets, Valentino’s two main shareholders—the Qatari fund Mayhoola (70%) and the French giant Kering (30%)—have reaffirmed their commitment. They have committed to injecting up to an additional 250 million euros if the company encounters difficulties in meeting its future payments. The bonds, which mature in 2033, will bear interest indexed to the six-month Euribor plus a 3% margin. Notably, these securities will not be listed on a regulated market or rated by credit rating agencies.
This restructuring comes as the company’s latest financial indicators point to a challenging fiscal year 2025. Revenue fell by 15% to 1.12 billion euros, with a particularly sharp decline in the Japanese and Asia-Pacific markets. Even more significantly, the brand’s operating income swung from a profit of 13 million euros in 2024 to a loss of 103 million euros in 2025. At the same time, net debt increased, reaching 1.13 billion euros (IFRS 16 standards).
The Kering Equation and the 2029 Horizon
At the heart of this reorganization, the duo of CEO Riccardo Bellini and Creative Director Alessandro Michele is working to restore the brand’s desirability. While Luca de Meo, a representative of Kering, has publicly praised the rigorous work carried out by the current management, the market remains watchful. Kering, which paid 1.7 billion euros for its minority stake in 2023, has an option to take full control of Valentino by 2029.
However, the specific situation facing François-Henri Pinault’s group is raising questions among some analysts. With first-quarter 2026 revenue down 6% and the Gucci brand still in a delicate transition phase, some observers do not rule out a postponement of the full acquisition of Valentino—or even a reevaluation of the acquisition strategy—until the French giant stabilizes its own revenue. In the meantime, Valentino is enjoying a crucial financial reprieve that will allow Alessandro Michele’s aesthetic vision to bear commercial fruit starting in 2026.