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 Directors*
July 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 operations*
July 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 Kering*
July 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 billion*
August 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 collaboration*
September 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 McQueen*
October 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 Creed*
October 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* *Reported*
*change* *Comparable*
*change*^*(*^*1)* *First nine months 2023*
*First nine months 2022*
*Reported*
*change* *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.
*Attachment*
· Kering - Press release - Third quarter 2023 revenue