Companies

Kering’s revenue declines after trying 2023

Feb 8, 2024 France

The French-based luxury group has reported a 4% year-on-year decline in revenue in 2023, driven by weak performances of all its main Houses. Fourth quarter also disappointed

Kering reported a full year revenue of 19.6 billion euros, which reflects a decrease of 4% on a reported basis and 2% on a constant currency basis, as compared to fiscal 2022. While sales from the directly operated retail network, including e-commerce, were stable on a constant currency basis, wholesale and Other revenue fell by 11%, as the group continued to strengthen the exclusivity of its distribution.

In the fourth quarter alone, the group’s revenue declined by 6% as reported and by 4% on a constant currency basis to 4.97 billion euros, on a comparable basis to the same period of the previous year.

Net income attributable to Kering totalled 2.98 billion euros last year, down from the 3.61 billion euros in net income registered in 2022.

“In a trying year for the group, we strengthened our organization and took significant steps to further enhance the visibility and exclusivity of our Houses”, commented François-Henri Pinault, Chairman and Chief Executive Officer, highlighting that the group is “focused on revitalizing Gucci, leveraging the unique blend of craftsmanship, Italian heritage, and modernity that characterizes this iconic House”.

Gucci

In 2023, Gucci’s revenue amounted to 9.9 million euros, a decline of 6% on a reported basis and 2% on a constant currency basis from the previous year. This is due to a 2% decrease in sales from the directly operated retail network and a 5% decrease in wholesale sales on a constant currency basis, as compared to 2022.

Yves Saint Laurent

Yves Saint Laurent's revenue last year was down by 4% on a reported basis and by 1% on a constant currency basis to 3.2 billion euros, on a comparable basis to 2022. While sales from the directly operated retail network rose by 4% year-on-year on a constant currency basis, wholesale revenue dropped by 26% year-on-year as the channel carried on its rationalisation.

Bottega Veneta

Bottega Veneta’s revenue totalled 1.6 billion euros in 2023, which represents a decrease of 5% on a reported basis and 2% on a constant exchange basis, as compared to the prior year. Similar to Yves Saint Laurent, the House saw a 4% increase in sales from its directly operated retail network, but a 24% decline in wholesale revenue, as compared to 2022.

Other Houses

2023 revenue from Other Houses amounted to 3.5 billion euros, a decrease of 9% as reported and 8% on a constant currency basis from the previous fiscal year. The increase in sales from the directly operated retail network of 3% year-on-year was offset by the decline in wholesale revenue of 29% year-on-year.

Outlook

“In a market environment that remains uncertain in early 2024” – continued Pinault -, “our continuing investments in our Houses will put pressure on our results in the short term”. But “thanks to the experience gained across the group through a decade of outstanding expansion, we are confident in achieving our long-term ambitions”, he concluded.

Image Credits: numeromag.nl

France Gucci Kering Luxury Quarter Results Results Year Results