Kering Group revenue exceeded 20 billion euros in 2022, an increase of 15 percent as reported and 9 percent on a comparable basis.
In the fourth quarter, total sales were down 2 percent as reported and 7 percent on a comparable basis, with mixed performances across houses and regions.
The group’s revenue from the directly operated retail network, which includes e-commerce sites, rose 10 percent on a comparable basis in 2022, driven in particular by Western Europe and Japan.
Kering reports an 11 percent rise in recurring operating income, which reached 5.6 billion euros, while recurring operating margin was 27.5 percent. Net profit amounted to 3.6 billion euros, up 14 percent, while Earnings per share were up 15 percent.
“All our Houses posted record revenues and contributed to higher operating income in 2022. But these good performances were not uniformly up to our ambitions and potential. Beyond the challenges some of our Houses faced, notably towards the end of the year, we are convinced that we are pursuing the right strategy for the long term,” said François-Henri Pinault, chairman and CEO of Kering in a statement.
Kering posts mixed performance across core brands
The company said that Gucci’s 2022 revenue amounted to 10.5 billion euros, up 8 percent as reported and 1 percent on a comparable basis. Sales in the directly operated retail network grew 1 percent on a comparable basis and wholesale revenue was stable year-on-year.
In the fourth quarter, Gucci’s revenue was down 14 percent on a comparable basis relative to the same period in 2021. In directly operated stores, sales dropped 15 percent from a very high base and were significantly affected by the situation in China during the quarter.
Yves Saint Laurent’s 2022 revenue amounted to 3.3 billion euros, up 31 percent as reported and 23 percent on a comparable basis. Sales from the House’s directly operated retail network rose by 28 percent, while wholesale revenue was up 6 percent.
In the fourth quarter, sales rose 4 percent on a comparable basis, due to performance in the directly operated retail network, where sales were up 7 percent, while wholesale revenue declined 13 percent.
Bottega Veneta’s 2022 revenue amounted to 1.7 billion euros, up 16 percent as reported and 11 percent on a comparable basis. Growth was driven by the directly operated retail network, where sales rose 15 percent on a comparable basis, while wholesale revenue was stable year-on-year. Fourth quarter sales were up 6% on a comparable basis, with sales in the directly operated retail network up 4 percent and wholesale up 13 percent.
Kering records revenue growth in other business houses
2022 revenue from Other Houses amounted to 3.9 billion euros, an increase of 18 percent as reported and 16 percent on a comparable basis. Growth was driven by the directly operated retail network, where sales were up 27 percent on a comparable basis. Wholesale revenue was down 6 percent on a comparable basis.
In the fourth quarter, revenue of Other Houses was down 4 percent on a comparable basis. Sales in the Other Houses’ directly operated retail network rose 2 percent during the quarter, driven by double-digit growth in Western Europe and Japan, while wholesale revenue was down 26 percent.
Kering Eyewear’s 2022 revenue achieved the billion-euro mark, up 58 percent as reported and 27 percent on a comparable basis to 1.1 billion euros. This excellent performance was confirmed in the fourth quarter, with revenue up 30 percent on a comparable basis.
At its February 14, 2023 meeting, Kering’s board of directors decided to ask shareholders to approve a cash dividend of 14 euros per share at the annual general meeting to be held on April 27, 2023. An interim dividend of 4.50 euros per share was paid on January 18, 2023 and if approved, the company added, a final dividend of 9.50 euros would be paid on May 4, 2023.
FAQs
Kering owns some 13 brands, but Gucci accounted for roughly one-half of Kering's $21.2 billion (€19.6 billion) in revenues last year, as overall sales dropped 4% from 2022 and Gucci was down 6%. Kering also underwent a management shakeup and Gucci appointed of a new creative director in 2023.
Why is Gucci declining? ›
Gucci was once a darling of the Kering group, delivering strong results in 2021 that were driven by an early pandemic-era boom. The lavish fashion line has since struggled to retain share of market as even affluent consumers have tightened their belts amid higher inflation and shifted toward more “quiet luxury” brands.
What is happening with Gucci? ›
Shares in the luxury brand's Paris-listed owner Kering closed down nearly 12%, their biggest one-day fall since March 2020, after the company warned that Gucci's first-quarter sales would be 20% lower than the same period of 2023.
Why is Kering stock down? ›
The stock dropped 12% in Paris trading, its steepest decline since March 2020, wiping about €6.3 billion euros ($6.8 billion) from Kering's market value. Kering blamed a steeper-than-expected sales drop at Gucci in the Asia-Pacific region.
How successful is Gucci today? ›
Strong retail network. As of 2022, Gucci was the fourth most valuable luxury brand worldwide, behind Louis Vuitton, Chanel, and Hermès. In that year, the brand had a value of about 37.9 billion U.S. dollars. It is the largest brand owned by its parent company, the Kering Group.
Why is Gucci designer leaving? ›
Sources believe Michele was presented with the suggestion of delegating some of his many responsibilities, possibly creating a new design structure with the addition of key individuals, and that this may have triggered a fracture since he is known for his hand-on approach and attention to every detail.
Why is Gucci struggling? ›
Kering SA warned that sales at Gucci have plunged about 20% in the first quarter due to a steeper-than-expected decline in the Asia-Pacific region, widening the gap between the French luxury company and its stronger rivals.
What problems is Gucci facing? ›
However, this shift towards affordability and accessibility has raised questions about the brand's exclusivity and whether it is a blessing or a curse . Additionally, the rapid pace of digitalization and the emergence of new market players pose unique challenges to established companies like Gucci .
Is Gucci gaining popularity steady or losing popularity? ›
Reshaping Gucci—Kering's most lucrative brand
But it has steadily lost market share to its rivals and hasn't been able to reap the benefits of COVID-19-induced luxury spending—the new “roaring 20s”—quite like its counterparts at LVMH.
Who is leaving Gucci? ›
Alessandro Michele is exiting Gucci, Kering announced today. The Roman designer had an enormously successful nearly eight-year run as creative director that reversed the fortunes of the Italian heritage label and changed the look of fashion.
But more fashion-oriented brands such as Burberry and Salvatore Ferragamo reported sales declines last quarter. So did Yves Saint Laurent, Bottega Veneta and Gucci, all owned by Paris-listed Kering.
Does Tom Ford own Gucci? ›
In 2001 French holding company Pinault-Printemps-Redoute took control of Gucci. Ford's inability to come to terms with the corporation regarding his contract precipitated his departure from Gucci in 2004. The following year he founded the fashion house Tom Ford. The label's flagship store opened in 2007.
What is the prediction for Kering? ›
KER Stock 12 Month Forecast
Based on 13 Wall Street analysts offering 12 month price targets for Kering SA in the last 3 months. The average price target is €408.42 with a high forecast of €460.00 and a low forecast of €346.00. The average price target represents a 11.77% change from the last price of €365.43.
Who is behind Kering? ›
Who controls Kering? ›
Kering is 42%-owned by Artémis, the holding company controlled by the Pinault family. The rest of the share capital is held by institutional, individual, and employee shareholders.
Is Gucci still popular? ›
Gucci, the Italian fashion house, dropped to second place in 2023 after years of holding the top spot. Despite a decline in online search interest from 22.34% in 2019 to 13.4% in 2023, the brand still performs well digitally, with a 13% growth in website traffic from 2022 to 2023.
Is Gucci making money? ›
Earnings before interest and taxes is forecasted at €4.87 billion for the year, compared to €5.59 billion a year earlier. Net income for 2023 is set to hit €3.15 billion, while free cash-flow is seen at €1.68 billion. This is down from the €3.21 billion the company posted in 2022.
Why is Gucci so popular now? ›
Because Gucci is a prestigious line, it's one of the most highly regarded fashion luxuries. Also, the brand's reputation for superior materials, intricate design details, and fine craftsmanship have made it a favorite of people looking for high-end fashion.
Is Gucci still big? ›
Corporate structure. Gucci's holding company Guccio Gucci S.p.A. is based in Florence, Italy, and is a subsidiary of the French luxury group Kering. In 2023, Gucci operated 538 stores for 20,711 employees, and generated €9.9 billion in revenue (down from €10.5 billion in 2022).
