Gucci-Owner PPR Said to Consider Changing Its Name to Kering which is supposed to evoke the idea of caring and signal a new chapter in the company’s development

Gucci-Owner PPR Said to Consider Changing Its Name to Kering

PPR SA (PP), the French owner of Gucci and Puma, is considering changing its name to Kering to cap its transformation into a luxury and sporting-goods specialist, according to people with knowledge of the plan.

The re-branding of Paris-based PPR may be announced this month, said the people, who asked not to be identified because the information is confidential. The name, which would be the company’s fifth since listing on the Paris stock exchange in 1988, is supposed to evoke the idea of caring and signal a new chapter in the company’s development, one of the people said.PPR, known formerly as Pinault-Printemps-Redoute and before that as Pinault-Printemps and Pinault SA, is disposing of retail assets it amassed in the past two decades to focus on luxury and sporting goods, which are more profitable and have better growth prospects. Chief Executive Officer Francois-Henri Pinault’s goal is to lift PPR’s sales to 24 billion euros ($31 billion) by 2020 from 9.7 billion euros in 2012.

Louise Beveridge, who heads communications at PPR, declined to comment.

The company, which on Feb. 25 agreed to sell two home- shopping brands to a Swedish buyout firm, aims to complete its transformation this year after spinning off the Fnac media and consumer-electronics chain and selling online retailer La Redoute, Pinault told Bloomberg News Feb. 15. Once that happens, PPR’s name would no longer reflect businesses it still owns, having sold department-store operator Printemps in 2006.

Existing Equity

“If you are changing your strategy and the existing equity that you’ve got of a brand doesn’t really have purpose in the market that you can see coming round the corner, then, to get something which demonstrates that you have a particular point, purpose, vision that is appropriate for your brand, can mean that it’s worth signaling a new name,” said Graham Hales, London CEO of brand consultant Interbrand.

With a new name and focus, PPR, whose brands include handbag maker Bottega Veneta and surf and snowboarding clothier Volcom, aims to boost its share price, which has traded at a discount to its luxury peers because of its retail businesses.

While PPR’s price-to-earnings multiple will probably rise after disposing of Fnac and the remainder of online fashion retailer Redcats, it may still trail rivals’ because of the sports lifestyle division, according to Luca Solca, an analyst at Exane BNP Paribas.

A “re-rating is hampered by PPR having turned into a different kind of conglomerate,” Solca said.

To contact the reporter on this story: Andrew Roberts in Paris at

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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