Kering said on Monday it plans to buy back up to 1 percent of its share capital over a 12-month period.
The French luxury group has signed an agreement to buy back a first tranche of 631,000 shares, equivalent to around 0.5 percent of its share capital, for a maximum of 300 million euros ($342 million). The purchase period begins on Oct. 29 and has a maximum duration of four months. Kering plans to cancel the shares.
The owner of brands including Gucci, Saint Laurent and Balenciaga is authorized to repurchase its stock at a price capped at 480 euros per share under the terms of a resolution ratified at the most recent meeting of its shareholders on April 26.
The share repurchase comes on the heels of several quarters of explosive growth, driven by Kering’s star brand, Gucci, which has registered seven consecutive quarters of organic growth above 35 percent. Companies frequently buy back shares as a means of returning cash to shareholders.
This story was reported by WWD and originally appeared on WWD.com.