Kering: Third quarter 2023 revenue
Kering - Press release - Third quarter 2023 revenue
PRESS RELEASE |
October 24, 2023 |
THIRD QUARTER 2023 REVENUE
Group revenue: €4,464
million,down 13% as reported, down 9% on a
comparable basis
“Beyond the challenging macroeconomic conditions
and softening demand across the luxury industry, the change in our
revenue performance in the third quarter reflects the impact of our
decisions to further elevate our brands and their distribution. The
organization we put in place in July will enable us to strengthen
the steering of our Houses in the current market environment and to
reclaim our positions and influence. With the acquisition of Creed
completed last week, one of the world’s most distinguished high
fragrance houses has joined our family, propelling our ambitions in
beauty onto the next stage.”François-Henri Pinault,
Chairman and Chief Executive Officer
- Group revenue
was €4.5 billion in the third quarter of 2023, down 13% as reported
and down 9% on a comparable basis, including a 6% negative
exchange-rate effect and a 2% positive impact from the acquisition
of Maui Jim.
- Revenue from the
directly operated retail network fell 6% on a comparable basis,
reflecting lower traffic and contrasted performances across
regions.
- Wholesale and
Other revenue fell sharply (down 20% on a comparable basis), due in
particular to the Group’s ongoing efforts to tighten its control
over distribution.
- In the first
nine months of the year, the Group generated revenue of €14.6
billion.
Revenue (in € millions) |
|
Q3 2023 |
Q3 2022 |
Reported change |
Comparable change(1) |
|
|
|
|
|
|
Gucci |
|
2,217 |
2,581 |
-14% |
-7% |
Yves Saint Laurent |
|
768 |
916 |
-16% |
-12% |
Bottega Veneta |
|
381 |
437 |
-13% |
-7% |
Other Houses |
|
805 |
995 |
-19% |
-15% |
Kering Eyewear and Corporate |
|
333 |
253 |
+31% |
+3% |
|
|
|
|
|
|
Eliminations |
|
(40) |
(45) |
- |
- |
|
|
|
|
|
|
KERING |
|
4,464 |
5,137 |
-13% |
-9% |
(1) On a comparable scope and exchange rate
basis. Gucci: new chapter
In the third quarter of 2023, Gucci’s revenue
amounted to €2.2 billion, down 14% as reported and down 7% on a
comparable basis. Sales in the directly operated retail network
fell 7% on a comparable basis during the quarter, with resilient
performances in handbags and from the Valigeria collection.
Wholesale revenue fell 17% on a comparable basis. During the
quarter, Gucci unveiled its new creative expression with Sabato De
Sarno’s debut collection for the House, and the management team is
hard at work on the flawless execution of its strategy.
Yves Saint Laurent: mixed performance on a high base of
comparison
Yves Saint Laurent’s revenue in the third
quarter of 2023 amounted to €768 million, down 16% as reported and
down 12% on a comparable basis, with significant differences across
regions. Sales in the directly operated store network fell 4% on a
comparable basis, due to a high multi-year base of comparison,
particularly in the third quarter of 2022. The House achieved
positive momentum in Women’s ready-to-wear and is pursuing its
strategy aimed at elevating its offering. Wholesale was down 38% on
a comparable basis.
Bottega Veneta: greater desirability and
exclusivity
Bottega Veneta’s revenue totaled €381 million in
the third quarter, down 13% as reported and down 7% on a comparable
basis. In the directly operated retail network, revenue fell very
slightly, down 2% on a comparable basis in the quarter. Wholesale
revenue was down 30% on a comparable basis.The Summer 2024 show was
particularly well received and the House is continuing to enhance
its exclusivity.
Other Houses: performance affected by lower Wholesale,
good momentum in Jewelry
Revenue from the Group’s Other Houses totaled
€805 million in the third quarter, down 19% as reported and down
15% on a comparable basis. In retail, Balenciaga’s growth was mixed
across regions and was affected by a high base of comparison, while
Alexander McQueen experienced a slowdown in the quarter. Negative
trends were magnified by lower Wholesale activity at both Houses.
Brioni’s sales were up, driven by its tailoring as well as
leisurewear offerings. Boucheron’s positive performance reflects
the success of its High Jewelry and Jewelry collections. Pomellato
achieved solid growth in its stores, while Qeelin showed excellent
momentum.
Kering Eyewear: continuing growth
Kering Eyewear’s revenue totaled €331 million in
the third quarter of 2023, up 34% as reported – due to the
contribution of Maui Jim – and up 2% on a comparable basis. Growth
was mainly driven by sales of optical frames following very
strong sales of sunglasses in the first half of the year.
MAIN ANNOUNCEMENTS SINCE JULY 1,
2023
Appointment of Maureen Chiquet to
Kering’s Board of DirectorsJuly 18, 2023 - The Board of
Directors decided to coopt Maureen Chiquet as independent director
for the remainder of Daniela Riccardi’s term of office (expiring on
the date of the shareholders’ meeting that will approve the
financial statements for the financial year ending December 31,
2025). She joined Kering’s Board of Directors in September 2023.
The cooptation of Maureen Chiquet will be subject to ratification
by the shareholders’ meeting that will approve the financial
statements for the financial year ending December 31, 2023. Maureen
Chiquet, a US citizen, has more than 35 years’ experience in the
fashion and luxury goods sector, including nine years as Global CEO
of Chanel.
Kering strengthens its governance and
operationsJuly 18, 2023 - Kering announced a series of top
appointments aimed at reinforcing stewardship of its Houses and
strengthening its organization:
- Francesca Bellettini, in addition
to her current role as President and CEO of Yves Saint Laurent,
which she has held since 2013, was appointed Kering Deputy CEO in
charge of Brand Development.
- Jean-Marc Duplaix, Kering Chief
Financial Officer since 2012, was appointed Kering Deputy CEO in
charge of Operations and Finance.
- Jean-François Palus, Kering Group
Managing Director, was appointed President and CEO of Gucci.
Kering and Mayhoola announce an
agreement for Kering to become a significant shareholder of
Valentino as part of a broader strategic partnership July
27, 2023 - Kering and Mayhoola announced a binding agreement for
Kering to buy a 30% shareholding in Valentino for a cash
consideration of €1.7 billion. The agreement includes an option for
Kering to acquire 100% of the Valentino’s share capital no later
than 2028.
Armelle Poulou appointed Chief Financial
Officer of KeringJuly 28, 2023 - Kering announced the
appointment of Armelle Poulou as Chief Financial Officer effective
September 1, 2023. Armelle Poulou joined the Group in 2019 and at
the time of the announcement was Director of Corporate Finance,
Treasury and Insurance. She continues to report to Jean-Marc
Duplaix, now Deputy CEO in charge of Operations and Finance.
Four-tranche bond issue for a total
amount of €3.8 billionAugust 29, 2023 - Kering issued a
four-tranche bond in a total amount of €3.8 billion. The issue
increases the Group’s financial flexibility, partly by financing
the acquisition of Creed.
Alexander McQueen and Sarah Burton
announce the end of their collaborationSeptember 11, 2023
- Alexander McQueen and its Creative Director Sarah Burton
announced the end of their two- decade collaboration.
Seán McGirr appointed Creative Director
of Alexander McQueenOctober 3, 2023 - Kering and Alexander
McQueen announced the appointment of Seán McGirr as the House’s
Creative Director. Seán McGirr was previously Head of Ready-to-Wear
at JW Anderson. He joined JW Anderson in 2020 to head up its men’s
collections, eventually adding womenswear to his responsibilities.
Prior to that, he was Women’s Designer for Dries Van Noten in
Antwerp. From 2014 to 2018, he was part of Uniqlo’s creative
offices in Tokyo and Paris working on the men’s collections guided
by Christophe Lemaire. He started his career assisting at Burberry
and Vogue Hommes Japan. An Irish national, born in Dublin, he is a
graduate of Central Saint Martins in London, where he obtained a
Master of Arts in Fashion in 2014.
Kering Beauté completes the acquisition
of CreedOctober 17, 2023 - Kering Beauté announced that it
had completed the acquisition of the high-end luxury fragrance
House Creed, in accordance with the terms disclosed on June 26,
2023, and following clearance from the antitrust authorities. Creed
will be consolidated in Kering financial statements starting
November 1, 2023.
AUDIOCAST
An
audiocast for analysts and investors will be held
at 6:00pm (CEST) on Tuesday, October 24,
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, Ginori 1735 as well as Kering Eyewear and Kering Beauté. 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 |
REVENUE FOR THE THIRD QUARTER AND FIRST
NINE MONTHS OF 2023
Revenue (in € millions) |
|
Q3 2023 |
Q3 2022 |
Reportedchange |
Comparablechange(1) |
First nine months 2023 |
First nine months 2022 |
Reportedchange |
Comparable
change(1) |
Gucci |
|
2,217 |
2,581 |
-14% |
-7% |
7,345 |
7,754 |
-5% |
-2% |
Yves Saint Laurent |
|
768 |
916 |
-16% |
-12% |
2,344 |
2,397 |
-2% |
+0% |
Bottega Veneta |
|
381 |
437 |
-13% |
-7% |
1,214 |
1,271 |
-5% |
-1% |
Other Houses |
|
805 |
995 |
-19% |
-15% |
2,661 |
2,950 |
-10% |
-8% |
Kering Eyewear and Corporate |
|
333 |
253 |
+31% |
+3% |
1,202 |
844 |
+42% |
+12% |
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
(40) |
(45) |
- |
- |
(167) |
(149) |
- |
- |
KERING |
|
4,464 |
5,137 |
-13% |
-9% |
14,599 |
15,067 |
-3% |
-2% |
(1) On a comparable scope and exchange rate basis.
- Kering - Press release - Third quarter 2023 revenue
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