World Footwear

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Kering fourth quarter sales declined by 7%

Feb 16, 2023 France
Kering fourth quarter sales declined by 7%
The weak performance of Gucci in the last quarter of 2022 (sales down by 15% year-over-year) due to the situation in China impacted Kering’s performance in the quarter. But the group’s full year revenue still grew by 9%
“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”, stated François-Henri Pinault, Chairman and Chief Executive Officer of Kering.

2022 Results

Last year, Kering's revenue totalled 20.35 billion euros, increasing by 15% as reported and by 9% on a comparable basis, year-over-year. The group noted that revenue from the directly operated retail network, which includes e-commerce sites, was up by 10% on a comparable basis in 2022, mainly driven by the performances in Western Europe and Japan.

In the fourth quarter, however, the company's total sales declined by 2% as reported and by 7% on an organic basis, as compared to the same period of the previous year, “with mixed performances across Houses and regions”.

Net profit attributable to the Group amounted to 3.6 billion euros in 2022, up by 14% on a comparable basis to 2021.

Gucci

In 2022, Gucci's revenue reached 10.5 billion euros, up by 8% as reported and by 1% on a comparable basis, with sales in the directly operated retail network growing by 1% and wholesale revenue remaining stable over the prior year. But, in the fourth quarter, Gucci’s revenue decreased by 14% on a comparable basis to the same period of 2021. In directly operated stores, sales dropped as far as 15%, having been significantly impacted by the situation in China during the quarter.

Yves Saint Laurent

Yves Saint Laurent recorded a 2022 revenue of 3.3 billion euros, up by 31% as reported and by 23% on a comparable basis. Kering further noted that the House's sales from the directly operated retail network rose by 28% and wholesale revenue was up by 6%. In the fourth quarter of 2022, sales increased by 4% on a comparable basis due to “the good performance in the directly operated retail network” (sales up by 7%), as wholesale revenue declined by 13%, year-over-year.

Bottega Veneta

Bottega Veneta's revenue grew by 16% as reported and 11% on a comparable basis last year, adding 1.7 billion euros to the group's total revenue. The House's growth was also driven by sales in the directly operated retail network (up by 15% on a comparable basis), with wholesale revenue remaining stable year-over-year. In the fourth quarter of 2022, sales were up by 6% on a comparable basis, “supported by good momentum” in both the directly operated retail network (up by 4%) and in wholesale (up by 13%).


Other Houses

Kering's Other Houses revenue totalled 3.9 billion euros in 2022, increasing by 18% as reported and by 16% on a comparable basis. Also here, growth was driven by the directly operated retail network (sales up by 27%) as wholesale revenue declined by 6%, year-over-year.

The group noted that Balenciaga “had an excellent 2022, despite a difficult month of December”, which was impacted by the House's November advertisement scandal (including one ad that featured children holding teddy bears dressed in bondage).


Image Credits: theimpression.com

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