Kering, owner of brands like Gucci, YSL, and Bottega Veneta, said that it has “no plan” to shift luxury goods production to the US to counter President Donald Trump’s tariffs.
The group’s CEO, François-Henri Pinault, said in a Tuesday earnings call that it “makes no sense” to move production out of Europe.
“Most of our brands we are producing in Italy and in France, and this is part of the promise that we bring through our products, through our heritage, to the consumer,” he told investors.
“We are selling part of our culture, being an Italian culture or a French culture,” he added. “So we have no plan of producing to counter the tariff. It makes no sense.”
He said the group already operates in “big markets where we have import duties,” such as China.
He added that the group might have to review its pricing strategy in light of the tariffs.
In January, Bernard Arnault, CEO of LVMH, floated the idea of relocating the group from France to the US to counter France’s proposed tax hikes.
However, he backpedaled on his statement after receiving backlash, including from the leader of the French trade union.
Trump has announced a slew of tariffs, including a 10% tariff on all goods from China and a 25% levy on all steel and aluminum imports.
He has also threatened 25% tariffs on all goods from Canada and Mexico. And on February 2, he told reporters that tariffs will “definitely happen with the European Union,” and that the trade actions of the EU were an “atrocity.”
Kering reported weak annual financial results. Revenue was €17.2 billion, or $17.82 billion, in 2024, down 12% from the year before. Its recurring operating income decreased by 46% to €2.554 billion.
Its biggest brand by revenue, Gucci, saw its comparable sales slide 21% in 2024 compared to 2023. YSL, its second-largest brand, reported a 9% decrease in comparable sales.
The company’s stock price has been down more than 40% in the past year. It remained largely flat after the company reported its annual results on Tuesday.
Representatives for Kering did not respond to a request for comment from Business Insider, sent outside regular business hours.
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