Seeking to Reduce Gucci Dependence, Kering Created a Debt Problem

In trying to reduce Kering’s over-reliance on struggling flagship label Gucci, French billionaire Francois-Henri Pinault has created another problem, as a string of acquisitions piled up debts just as the industry entered a prolonged slump.

Those debts are getting harder to manage, with Kering shares down 60 percent over the past two years and US President Donald Trump’s tariff threats dashing hopes of a sector rebound, and are weighing on the group as it vies with deep-pocketed rivals.