Kering: First Quarter 2023 Revenue
Kering Press release Q1_25 04 23
PRESS RELEASE |
April 25, 2023 |
FIRST
QUARTER 2023
REVENUE
Group revenue:
€5,077 millionUp
2% as reported and up 1% on a comparable basis
“Kering’s performance in the first quarter
remained mixed, as we had anticipated. As we work to augment the
desirability of our brands and raise their profile in key markets,
we are encouraged by the gradual improvement in activity month
after month during the period. A host of initiatives undertaken by
all our Houses to enhance their appeal and exclusivity lays the
foundations for sustained, profitable
growth.”François-Henri Pinault, Chairman and Chief
Executive Officer
- In the first
quarter of 2023, the Group’s revenue grew by 2% as reported and by
1% on a comparable basis, with trends improving throughout the
period.
- Revenue in the
directly operated store network, including e-commerce, rose by 4%
on a comparable basis, with all Group Houses contributing to the
growth. The increase was driven by good momentum in Western Europe
and Japan. Revenue was down in North America but resumed growth in
Asia-Pacific due to the gradual recovery of the Chinese
market.
- Wholesale and
other revenue was down 10% on a comparable basis, as the Group’s
Houses continue to reduce the share of wholesale in their
distribution.
Revenue (in € millions) |
|
Q1 2023 |
Q1 2022 |
Reported change |
Comparable change(1) |
|
|
|
|
|
|
Gucci |
|
2,616 |
2,591 |
+1% |
+1% |
Yves Saint Laurent |
|
806 |
739 |
+9% |
+8% |
Bottega Veneta |
|
395 |
396 |
-0% |
+0% |
Other Houses |
|
890 |
973 |
-9% |
-9% |
Kering Eyewear and Corporate |
|
433 |
308 |
+41% |
+11% |
|
|
|
|
|
|
Eliminations |
|
(63) |
(51) |
- |
- |
|
|
|
|
|
|
KERING |
|
5,077 |
4,956 |
+2% |
+1% |
(1) On a comparable scope and exchange
rate basis.
Gucci: encouraging trends
In the first quarter of 2023, Gucci’s revenue
amounted to €2,616 million, an increase of 1% both as reported
and on a comparable basis. Sales in the directly operated store
network grew 1% on a comparable basis relative to the first quarter
of 2022. Revenue from all key product categories was up, in
particular handbags, the Valigeria collection of travel
accessories, and women’s ready-to-wear. Iconic lines remained
highly successful while new collections met with an enthusiastic
reception.Wholesale revenue was down 7% on a comparable basis.
Yves Saint Laurent: very good
performance in directly operated
stores
Yves Saint Laurent had a good start to the year
with revenue of €806 million, up 9% as reported and up 8% on a
comparable basis.Sales in the directly operated store network rose
14% on a comparable basis, fueled by outstanding performances in
leather goods and ready-to-wear, together with the success of the
House’s elevation strategy.The streamlining of the Wholesale
channel continued, with revenue down 12% on a comparable basis.
Bottega Veneta: healthy,
solid growth in retail
Bottega Veneta’s first-quarter revenue was
stable year-on-year at €395 million. As the House continued to
overhaul its directly operated store network – expanding selling
space and refurbishing stores –, business levels were sustained,
with retail revenue up 5% on a comparable basis. The House’s
effective implementation of its strategy is yielding very healthy
growth.Wholesale revenue was down 14% on a comparable basis,
reflecting the accelerated optimization of this channel.
Other Houses: mixed
performances
Kering’s Other Houses generated revenue of
€890 million in the first quarter, down 9% as reported and on
a comparable basis. Sales in the directly operated store network
rose by 7% on a comparable basis, with all Houses up. Trends at
Balenciaga and Alexander McQueen were positive. Brioni’s sales were
excellent, and the performance of Kering’s Jewelry Houses was
outstanding.Wholesale revenue, down 32% on a comparable basis, was
impacted by the Houses’ streamlining strategy, as well as by the
situation in the US.
Kering Eyewear: an excellent first quarter
Kering Eyewear’s revenue in the first three
months of 2023 amounted to €433 million, up 11% on a
comparable basis, driven by the strong momentum of the brands in
its portfolio. Revenue was up 44% as reported, due to the strong
contribution of Maui Jim, consolidated in Kering’s financial
statements since October 1, 2022. In the first quarter of 2023,
Kering Eyewear announced the acquisition of UNT, a French
manufacturer of high-precision components.
MAIN ANNOUNCEMENTS SINCE JANUARY 1,
2023
Appointment of Sabato
de Sarno as
Gucci’s Creative
DirectorJanuary 28, 2023 – Kering and Gucci announced
Sabato De Sarno’s arrival as Creative Director of Gucci. Mr.
De Sarno will present his debut runway collection at Milan
Women’s Fashion Week in September 2023. As part of his new role,
Sabato De Sarno will lead the House’s creative studio and
will report to Marco Bizzarri, President and Chief Executive
Officer of Gucci. He will be responsible for defining and
expressing the House’s creative vision through womenswear,
menswear, leather goods, accessories and lifestyle
collections.
Appointment of Raffaella
Cornaggia as Chief Executive Officer of
Kering BeautéFebruary 3, 2023 – Kering
announced the appointment of Raffaella Cornaggia as CEO of Kering
Beauté. Based in Paris and reporting to Jean-François Palus, Group
Managing Director of Kering, she is a member of the Group’s
Executive Committee. In her new role, and supported by a team of
seasoned professionals, she will help develop expertise in the
Beauty category for Bottega Veneta, Balenciaga, Alexander McQueen,
Pomellato and Qeelin. The creation of Kering Beauté will enable the
Group to support these brands in the development of this
category, which is a natural extension of their universes.
Kering is confident that this will create value for the Group and
its Houses, drawing on each of their unique identities in a way
that is fully consistent with their strategy and market
positioning.
Dual-tranche bond issue for a total
amount of
€1.5 billionFebruary
20, 2023 – Kering carried out a dual-tranche bond issue in a
total amount of EUR 1.5 billion, consisting of a
EUR 750 million tranche with a 6-year maturity and a
3.25% coupon and a EUR 750 million tranche with a 10-year
maturity and a 3.375% coupon. This issue, which forms part of
the Group’s active liquidity management, enhances its funding
flexibility by enabling it to refinance existing debt. The issue
saw strong demand from bond investors, confirming the market’s
confidence in the Group’s credit quality. Kering’s long-term debt
is rated A with a stable outlook by Standard & Poor’s.
Gucci, supported by Kering, launches
its “Circular
Hub”, first dedicated circular
economy platform in the Italian Luxury industryFebruary
21, 2023 – With support of Kering, Gucci launched Italy’s first
dedicated circular economy platform for the Luxury sector. The
Circular Hub will aim to accelerate the circular transformation of
the Italian fashion industry’s production model, across the entire
value chain. Starting from raw materials and design, through to
production optimization and logistics, the Circular Hub will be an
open innovation platform for the design and manufacturing of
circular products and the development of new solutions.
Kering Eyewear acquires French
manufacturing company UNTMarch 13, 2023 – Kering Eyewear
signed an agreement to acquire 100% of French company UNT, Usinage
& Nouvelles Technologies, to strengthen its position in the
luxury eyewear industry. Founded in 1989 in Morbier in the
Bourgogne-Franche-Comté region of France, UNT is a key player in
the manufacturing of high-precision metal and mechanical components
for the entire luxury eyewear sector.
Kering publishes its new report on
progress toward its sustainability targetsMarch 22, 2023 –
Six years after launching its “Crafting Tomorrow’s Luxury”
strategy, Kering published a new report showing its progress toward
sustainability targets between 2020 and 2023. In the three years
following the publication of its first progress report in 2020, the
Group made significant strides toward attaining its initial 2025
social and environmental targets. Since then, Kering has added to
those initial targets, with a series of ambitious new targets in
line with the Group’s strategies regarding the climate,
biodiversity and the circular economy. Accordingly, Kering has
committed to reducing its greenhouse gas emissions by 40% by 2035
compared with 2021.
European Commission preliminary
investigationApril 19, 2023 – In the scope of an
inspection carried out as part of a preliminary investigation into
the fashion sector in several countries under EU antitrust rules,
the European Commission has started on April 18, 2023, an
inspection at the Italian premises of Gucci, a subsidiary of
Kering. The Group is fully cooperating with the Commission in the
context of this investigation.
AUDIOCAST
An
audiocast for analysts and investors will be held
at
6:00 p.m.
(CEST) on Tuesday, April 25, 2023. It may be
accessed here.
The slides (in PDF
format) will be available ahead of the audiocast at
https://www.kering.com/en/finance.
A replay of the
webcast will also be available at www.kering.com.
About Kering
A global Luxury group, Kering manages the
development of a series of renowned Houses in Fashion, Leather
Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo,
Qeelin, as well as Kering Eyewear. By placing creativity at the
heart of its strategy, Kering enables its Houses to set new limits
in terms of their creative expression while crafting tomorrow’s
Luxury in a sustainable and responsible way. We capture these
beliefs in our signature: “Empowering Imagination”. In 2022, Kering
had over 47,000 employees and revenue of €20.4 billion.
Contacts
Press |
|
|
Emilie
Gargatte |
+33 (0)1 45 64 61
20 |
emilie.gargatte@kering.com |
Marie de
Montreynaud |
+33 (0)1 45 64 62
53 |
marie.demontreynaud@kering.com |
|
|
|
Analysts/investors |
|
|
Claire
Roblet |
+33 (0)1 45 64 61
49 |
claire.roblet@kering.com |
Julien
Brosillon |
+33 (0)1 45 64 62
30 |
julien.brosillon@kering.com |
- Kering Press release Q1_25 04 23
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