Kering Adds €1.7 Billion Valentino Stake as Gucci Growth Flags

Kering SA agreed to buy a 30% stake in fashion house Valentino for €1.7 billion ($1.87 billion) in cash as growth at Gucci, its biggest brand, continues to sputter.

The French company has the option to purchase the rest of Valentino from its owner, Qatar’s Mayhoola, before the end of 2028. The deal, coming just weeks after Kering bought high-end perfumer Creed, could lead to Mayhoola taking a stake in the luxury group.

The Gucci owner has struggled to keep pace with rivals amid a boom in the fashion business that’s helped transform bigger French firm LVMH into the ...