Tuesday, April 25, 2023
First Quarter 2023 Revenue
Group revenue: €5,077 million
Up 2% as reported and up 1% on a comparable basis
“Kering’s performance in the first quarter remained mixed, as we had anticipated. As we work to augment the desirability of our brands and raise their profile in key markets, we are encouraged by the gradual improvement in activity month after month during the period. A host of initiatives undertaken by all our Houses to enhance their appeal and exclusivity lays the foundations for sustained, profitable growth.”
François-Henri Pinault, Chairman and Chief Executive Officer
- In the first quarter of 2023, the Group’s revenue grew by 2% as reported and by 1% on a comparable basis, with trends improving throughout the period.
- Revenue in the directly operated store network, including e-commerce, rose by 4% on a comparable basis, with all Group Houses contributing to the growth. The increase was driven by good momentum in Western Europe and Japan. Revenue was down in North America but resumed growth in Asia-Pacific due to the gradual recovery of the Chinese market.
- Wholesale and other revenue was down 10% on a comparable basis, as the Group’s Houses continue to reduce the share of wholesale in their distribution.
Gucci: encouraging trends
In the first quarter of 2023, Gucci’s revenue amounted to €2,616 million, an increase of 1% both as reported and on a comparable basis.
Sales in the directly operated store network grew 1% on a comparable basis relative to the first quarter of 2022. Revenue from all key product categories was up, in particular handbags, the Valigeria collection of travel accessories, and women’s ready-to-wear. Iconic lines remained highly successful while new collections met with an enthusiastic reception.
Wholesale revenue was down 7% on a comparable basis.
Yves Saint Laurent: very good performance in directly operated stores
Yves Saint Laurent had a good start to the year with revenue of €806 million, up 9% as reported and up 8% on a comparable basis.
Sales in the directly operated store network rose 14% on a comparable basis, fueled by outstanding performances in leather goods and ready-to-wear, together with the success of the House’s elevation strategy.
The streamlining of the Wholesale channel continued, with revenue down 12% on a comparable basis.
Bottega Veneta: healthy, solid growth in retail
Bottega Veneta’s first-quarter revenue was stable year-on-year at €395 million.
As the House continued to overhaul its directly operated store network – expanding selling space and refurbishing stores –, business levels were sustained, with retail revenue up 5% on a comparable basis. The House’s effective implementation of its strategy is yielding very healthy growth.
Wholesale revenue was down 14% on a comparable basis, reflecting the accelerated optimization of this channel.
Other Houses: mixed performances
Kering’s Other Houses generated revenue of €890 million in the first quarter, down 9% as reported and on a comparable basis.
Sales in the directly operated store network rose by 7% on a comparable basis, with all Houses up. Trends at Balenciaga and Alexander McQueen were positive. Brioni’s sales were excellent, and the performance of Kering’s Jewelry Houses was outstanding.
Wholesale revenue, down 32% on a comparable basis, was impacted by the Houses’ streamlining strategy, as well as by the situation in the US.
Kering Eyewear: an excellent first quarter
Kering Eyewear’s revenue in the first three months of 2023 amounted to €433 million, up 11% on a comparable basis, driven by the strong momentum of the brands in its portfolio. Revenue was up 44% as reported, due to the strong contribution of Maui Jim, consolidated in Kering’s financial statements since October 1, 2022. In the first quarter of 2023, Kering Eyewear announced the acquisition of UNT, a French manufacturer of high-precision components.
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, as well as Kering Eyewear. 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.
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