Saudi Arabia, Kering Group Sign MoU to Elevate Fashion Sustainability in Kingdom

The Saudi Fashion Commission logo
The Saudi Fashion Commission logo
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Saudi Arabia, Kering Group Sign MoU to Elevate Fashion Sustainability in Kingdom

The Saudi Fashion Commission logo
The Saudi Fashion Commission logo

The Saudi Fashion Commission has signed a memorandum of understanding (MoU) with French-based Kering, one of the world’s most influential luxury fashion conglomerates, to engage in discussions that support the development and implementation of initiatives that align with Saudi Arabia’s broader goals for the fashion sector.

The signing ceremony, held in Riyadh, was attended by Saudi Fashion Commission CEO Burak Cakmak and Chief Sustainability and Institutional Affairs Officer at Kering Marie-Claire Daveu.

The MoU marks the beginning of a strategic alliance aimed at exploring collaborative efforts in several key areas of common interest. The two organizations will work together to establish Kering Generation Awards, which recognize and celebrate leading sustainable fashion businesses, including establishing award criteria, participant selection processes, and award recipient development.

Moreover, the collaboration features a Regional Sustainability Index, providing fashion enterprises with a roadmap to enhance sustainable practices.
The initiative also entails publishing joint reports on achievements, conducting awareness sessions, and aligning with key events in Saudi’s annual fashion calendar.

Leveraging Kering’s industry expertise, the two parties will focus on customer engagement, circular economy and water protection and aim to identify pioneering approaches to sustainable materials that can serve as industry standards.

This partnership underscores the Saudi Fashion Commission’s commitment to advancing sustainability across the fashion value chain. As a leader in sustainable luxury fashion, Kering brings a wealth of experience in managing eco-conscious initiatives, reinforcing the MoU’s potential to drive meaningful change in the region’s fashion landscape.

“We are delighted to partner with Kering, whose commitment to sustainability aligns with our mission to foster a forward-thinking, eco-conscious fashion ecosystem in Saudi Arabia. Together, we aim to set new standards for sustainability and innovation in the region,” said Cakmak.

As for Daveu, she said that the MoU presents a remarkable opportunity for the company to support the growth of sustainable fashion practices in Saudi Arabia.

“We look forward to collaborating on initiatives that will contribute to a more sustainable future for the fashion industry,” she added.

The MoU will be effective immediately for an initial term of one year, with an option for automatic renewal upon mutual agreement.
This partnership reflects the shared vision of the Saudi Fashion Commission and Kering to lead the region’s move toward a more sustainable and responsible fashion industry.



Kering Warns on Annual 2024 Operating Profit as Gucci Sales Fall

This photograph taken during a presentation press conference in Paris on March 22, 2013 shows the new name and logo of French luxury and retail group PPR which will become officially Kering after its approval by the annual general meeting to be held on June 18. (AFP)
This photograph taken during a presentation press conference in Paris on March 22, 2013 shows the new name and logo of French luxury and retail group PPR which will become officially Kering after its approval by the annual general meeting to be held on June 18. (AFP)
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Kering Warns on Annual 2024 Operating Profit as Gucci Sales Fall

This photograph taken during a presentation press conference in Paris on March 22, 2013 shows the new name and logo of French luxury and retail group PPR which will become officially Kering after its approval by the annual general meeting to be held on June 18. (AFP)
This photograph taken during a presentation press conference in Paris on March 22, 2013 shows the new name and logo of French luxury and retail group PPR which will become officially Kering after its approval by the annual general meeting to be held on June 18. (AFP)

French luxury goods group Kering warned on Wednesday its full-year operating income would almost halve after reporting a larger-than-expected drop in third quarter sales, as weak demand in China deepened the struggles of its main label Gucci.

Revenue for the group which also owns fashion brands Saint Laurent, Balenciaga and Bottega Veneta, was 3.79 billion euros ($4.08 billion), a 16% decline on an organic basis.

The figure was worse than an analyst consensus estimate of an 11% decline, according to a Barclays note.

Kering said its 2024 recurring operating income could be about 2.5 billion euros, following the larger-than-expected slowdown in the third quarter, compared with 4.75 billion euros a year earlier.

Kering's warning comes as the luxury sector suffers a slowdown, with luxury bellwether LVMH last week missing expectations and flagging a drop in Chinese consumer confidence to COVID-era lows, with a deterioration in demand for high end fashion over the quarter.

Sales at Gucci, which accounts for half of annual group sales and two-thirds of profit, continued to slide and were down 25% in the quarter, compared to analysts' consensus expectations for a 21% decline.

"We are executing a far-reaching transformation of the group, and at Gucci in particular, at a time when the whole luxury sector faces unfavorable market conditions," Kering Chair and CEO Francois Henri Pinault said in a statement.

Kering has been managing a broad overhaul of the century-old Italian fashion house, rebuilding top executive teams and introducing a new streamlined design style under the artistic direction of Sabato de Sarno, while pushing the products upmarket.

The group said in a statement that the overhaul of Gucci's leather goods category, with the introduction of a host of new products late in the quarter, was well underway.

Earlier this month, it named Stefano Cantino as CEO effective from January, replacing longtime Kering executive Jean-Francois Palus who held the role for an interim period since last year.