For the 2022 full year, group revenue climbed 9 per cent on a comparable basis to €20.35 billion. Gucci’s revenue edged up 1 per cent to €10.48 billion; Saint Laurent’s revenue climbed 23 per cent to €3.3 billion; Bottega Veneta’s revenue was up 11 per cent to €1.74 billion; and the Other Houses’ revenue amounted to €3.87 billion, up 16 per cent.
Kering’s fourth-quarter performance lagged behind its biggest rival. On 26 January, LVMH said itssales were up 9 per cent on a comparable basis to around €22.7 billion in the same period, with its fashion and leather goods division growing 10 per cent to €10 billion.
Luca Solca, senior analyst for consultancy Bernstein, called Kering’s Q4 performance “muted”. “Gucci has suffered a 15 per cent organic growth decline [in its retail sales], consensus expected a 12 per cent decline. Other Houses — dragged by the Balenciaga scandals — suffered a 4 per cent decline against a 5 per cent growth expected by consensus,” he wrote.
In the statement, Kering chairman and CEO François-Henri Pinault said that the company remained optimistic: “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,” he said. “Our 47,000 people share a strong entrepreneurial culture as well as values of responsibility and engagement. Together, we nurture the desirability and exclusivity of our brands, so they all achieve market positions commensurate with their unique heritage and recognised creativity. In an environment that remains uncertain, I have no doubt that 2023 will be another year of success for our houses and of growth for our group.”
De Sarno’s first collection for Gucci will be for Spring/Summer 2024.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
Carolina Herrera’s Wes Gordon: “New York is remarkably supportive of young talent”
Pharrell Williams named Louis Vuitton men’s creative director
Young Chinese consumers drive fragrance sales uplift, says L’Oréal
As an enthusiast deeply immersed in the world of luxury fashion and business, my expertise extends to the intricate dynamics of the industry, encompassing market trends, financial performances, and the strategic maneuvers of major players. My knowledge is not merely observational; it is backed by an in-depth understanding of financial reports, industry analyses, and the nuances that shape the competitive landscape.
The recent financial report of Kering for the full year 2022 provides a fascinating glimpse into the company's performance. Kering, a global luxury group, recorded a remarkable 9% increase in group revenue on a comparable basis, reaching a substantial €20.35 billion. Delving into the specifics of its individual houses, Gucci, a flagship brand under Kering, saw a modest yet significant revenue increase of 1%, amounting to €10.48 billion. Saint Laurent exhibited even more impressive growth, with a substantial 23% increase in revenue, reaching €3.3 billion. Bottega Veneta, another prominent brand in Kering's portfolio, experienced an 11% growth in revenue, totaling €1.74 billion. The Other Houses category contributed significantly as well, achieving a 16% increase in revenue, totaling €3.87 billion.
However, despite these positive figures, Kering's fourth-quarter performance appeared to lag behind its main rival, LVMH (Moët Hennessy Louis Vuitton). LVMH reported a 9% increase in sales on a comparable basis, amounting to around €22.7 billion, with its fashion and leather goods division growing by 10% to €10 billion during the same period.
Notably, Kering faced challenges in the fourth quarter, prompting Luca Solca, a senior analyst for consultancy Bernstein, to describe the performance as "muted." Gucci, in particular, experienced a 15% decline in organic growth in retail sales, surpassing the consensus expectation of a 12% decline. The Other Houses category, affected by the Balenciaga scandals, suffered a 4% decline against the anticipated 5% growth by consensus.
In response to these challenges, Kering's chairman and CEO, François-Henri Pinault, expressed optimism about the company's long-term strategy. Pinault acknowledged the difficulties faced by some houses, especially towards the end of the year, but he remains confident in the company's direction. He emphasized the strong entrepreneurial culture and values of responsibility and engagement shared by Kering's 47,000 employees. Pinault anticipates another year of success for the houses and growth for the group in 2023, despite the uncertain business environment.
This insightful financial report offers a comprehensive view of Kering's performance, showcasing both successes and challenges within its diverse portfolio of luxury brands. It provides a valuable lens through which to analyze the competitive dynamics of the luxury fashion industry and the strategies employed by major players like Kering and its counterparts.
