Lady Gaga plays Patrizia Reggiani in the movie House of Gucci, who married the son of one of the two brothers who founded Gucci, the Italian luxury powerhouse. Her fate, as you will see when watching the movie, is ravaged by greed and jealousy.
But at the end of the movie, Ridley Scott, who directed and produced the film, indicates that the Gucci company went on to become a public company.
Since I am a stock analyst, and I had not heard that Gucci was listed anywhere, at least in the US, I wanted to know what he was talking about.
Furthermore, I also wanted to know how much money is Gucci now worth. What did the murder of Mauricio Gucci result in, in terms of how much the family lost?
Is Gucci a Public Company?
Yes, and no. There is no public stock with the name Gucci. It is now owned by a public company called Kering SA. Kering is a public stock that trades on the Euronext stock exchange under the symbol KER. It also trades over the counter as an ADR (American Depository Receipt) in the US under the symbol PPRUY.
KER stock trades at a price of EUR 665.50 per ordinary share and the PPRUY trades for $75.06 per ADR, both as of Friday, Nov. 26. (The difference is due to the exchange rate at $1.13 per EUR, and the fact that there are 10 ADRs per one KER ordinary share.)
What Gucci Is Worth
The important thing to note is that Kering SA is now worth $94 billion. Its European market value is EUR 83.199 billion.
But even more importantly, over half of Kering's sales (52%) come from Gucci Group. For example, in Q3, Kering made EUR 2.18 billion ($2.46 billion) out of the total EUR 4.19 billion ($4.73 billion) sales for the quarter. That implies that Gucci makes about $10 billion annually in sales, out of the total $19 billion for Kering.
This means that Kering trades for about 5 times sales, and it also implies that Gucci, itself is worth about $50 billion.
That is a far cry from the EUR 150 million ($169.5) for the 42% of Gucci that Mauricio Gucci was offered right before he was murdered (see the movie).
The company is now an amalgamation of brands, as seen in the list below.
What Happened After the Movie
Mauricio Gucci was murdered on March 27, 1995. The house of Gucci was indeed public after that for several years but was later acquired.
For example, in 1999, a 42% stake in Gucci was acquired by another historic family, the Pinault Group, based in France. That same year Gucci acquired famed French luxury group Yves Saint Laurent and in 2000 it bought famed jewelry group House Boucheron. Later in 2001, the Pinault Group raised its stake to 52.3% after a famous "Battle for Gucci Group" with rival Arnault group which owned LVMH.
Slowly but surely the Pinault group acquired more Gucci share, raising its stake to 54.4% in 2002, and 67.6% in 2003. Finally, after a tender offer for the remaining public shares through a tender offer, Pinault Group raised its stake to 99.4% in 2004. It had changed its name to Pinault-Printemps-Redoute but later shortened it to PPR Group. After a series of acquisitions, the company later changed its name in 2013 to the Kering SA, based in Paris.
Bottom Line: The Story of Gucci Greed
Gucci brand is now worth over $50 billion, and it's part of a public company worth $94 billion. It's too bad the whole Gucci clan got caught up in greed and jealousy. If they had been able to withstand these forces, their family could be worth many billions.
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This is not financial advice and you should not rely on my analysis to buy or sell any stock, security, or crypto, as I am not undertaking to induce you to buy or sell securities.
I am relying on the “publisher’s exclusion” in the Investment Advisers Act of 1940 to provide this information without any personalized or individualized investment advice.
This represents my analysis of Kering SA and the public companies that it has invested in and it is not meant to provide you with specific advice in your own situation. I do not own any position in any of these companies right now, but I may buy it in the near future. Your own situation could be different and this is not a recommendation to purchase the stock.
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