Kering plans to double the revenue of fashion house Yves Saint Laurent and its eyewear division as French luxury conglomerates seek to reduce their reliance on star brand Gucci.
Yves Saint Laurent's sales would reach € 5 billion, equivalent to about $5.4 billion, and eyewear sales would reach €2 billion in the mid-term, according to plans announced by the company in a presentation to investors held in Paris on Wednesday and Thursday.
The recent Covid-19-related lockdowns in China, where Gucci has a relatively large presence, further highlight Kering's vulnerability to issues affecting the brand.
François Henri Pinault, CEO of Kering, previously stated that he wanted to expand the company through acquisitions, but few attractive brands are ready to transform the group.
To boost sales of Kering's second-largest brand, Yves Saint Laurent, the company has announced to investors that it will open new stores, especially in the United States, to help the label reach new customers. New store openings will help brands focus on selling to local consumers, rather than focusing primarily on tourists, Kering said.