Artemis, the Pinault family holding company that controls Gucci-owner Kering, has dismissed liquidity concerns tied to a recent rise in debt, calling the spike “temporary” and unrelated to lower dividends from Kering and other assets.

The privately held investment group also clarified that its borrowing terms contain no financial covenants tied to Kering’s share price, countering speculation among some investors.

Chaired by outgoing Kering CEO François-Henri Pinault, Artemis holds a 43% stake in the French fashion and leather goods group and controls it through a majority of voting rights. The company has drawn growing investor scrutiny following reports of elevated debt levels across its portfolio, part of an effort to diversify holdings.

Some analysts have raised concerns that Artemis’ high debt burden may limit Kering’s ability to turn around its struggling flagship label Gucci, particularly as rivals like LVMH are making aggressive brand investments.

“We have no liquidity problems,” Artemis said in a statement to Reuters. The company added that it has less than 500 million euros ($577 million) of debt maturing in the next two years, and more than one billion euros in available cash.

Debts and dividends

Artemis, which also owns 54% of Hollywood talent agency CAA and 29% of Puma, has historically kept a low profile with both the media and investors. However, annual accounts released alongside a recent bond issue provide a rare glimpse into its financials.

At the end of 2024, Artemis’ consolidated group debt stood at 26.7 billion euros—nearly double the amount from two years earlier. Kering, the largest asset consolidated in the group’s books, held 14 billion euros in debt by the end of 2024, largely accrued through acquisitions led by Pinault to counter Gucci’s slowdown.

On a standalone basis—excluding operating companies like Kering—Artemis held 7.1 billion euros in debt as of May 31, the company revealed in a bond filing last month. In 2024, Artemis paid 227 million euros in net interest charges, up sharply from 60 million euros the year prior.

The group attributed the debt increase to its 2023 acquisition of CAA, describing it as a “temporary spike” linked to a strategy aimed at expanding beyond Europe and the luxury sector.

Artemis’ 2023 financial statements valued its majority stake in CAA at $3.7 billion, with the agency—whose clients include the Obamas and Scarlett Johansson—estimated at $7 billion in total.

While debt servicing costs rise, dividend income is falling. Kering, which accounted for more than 80% of Artemis’ financial income over the past two years, cut its 2024 dividend to 739 million euros from 1.7 billion euros the previous year, following multiple profit warnings.

Barclays analysts forecast that Kering’s dividend payout could fall further to 364 million euros in 2026 due to continued underperformance. Artemis holds roughly 43% of Kering shares.

Kering declined to comment.

Puma, which contributed 35 million euros to Artemis’ dividend income over the past two years, also cut its 2025 dividend by about one-third and warned of a potential full-year loss.

Covering needs

“It is incorrect to assume that we are dependent on Kering’s dividend flows to finance the company. In fact, other companies in the Group pay regular and significant dividends which cover most of our debt servicing needs,” Artemis said, without elaborating.

In addition to its holdings in Kering, Puma and CAA, Artemis owns auction house Christie’s, several premium wineries, and a polar cruise operator—all unlisted businesses.

Without Kering, Artemis posted a recurring operating profit of 48.9 million euros in 2024, reversing a 115-million-euro loss the year prior, according to its financial filings.

Over the past two years, Kering’s share price has dropped by nearly 60%, while Puma shares are down 66%.

In a recent note focusing on Artemis’ finances, BofA analysts said some investors expressed concern that its debt may contain covenants tied to Kering’s stock price. Artemis dismissed those concerns, stating: “The Group has no financial covenants linked to Kering’s share price.”

The company also said its June bond issue—worth 400 million euros and tied to Kering’s share performance—was used to refinance an earlier bond linked to Puma’s stock and was oversubscribed.

($1 = 0.8674 euros)