Thursday, April 21, 2022
Sustained growth in the first quarter of 2022
Group revenue: €4,956 million
up 27% as reported and up 21% on a comparable basis
“We opened 2022 on a very solid first quarter in a more uncertain environment, notably impacted by tightening Covid restrictions in China since March. All our Houses posted double-digit revenue growth in the quarter, with spectacular performances at Saint Laurent, our Other Houses, particularly Balenciaga, and Kering Eyewear. Bottega Veneta also delivered sharp higher sales on a more demanding base. Gucci’s strong showing in North America and Europe was overshadowed by its exposure to China, where we are boosting its organization to fully capture the vitality of the market. While we remain attentive to economic and geopolitical conditions, we invest in all our brands, whose attractivity will continue to fuel our growth and profitability. Finally, I want to express my heartfelt sympathy, on behalf of all of us at Kering, to the people whose lives are affected by the war in Ukraine.”
François-Henri Pinault, Chairman & CEO
- Group revenue rose sharply in the first quarter of 2022, up 27% as reported and up 21% on a comparable basis yearon-year. The difference is primarily due to foreign exchange translation, as scope was broadly neutral, the consolidation of Lindberg offsetting the disposal of the Group’s watches activities.
- Revenue from directly operated stores were up 23% on a comparable basis yearon-year and up 32% relative to the same period in 2019.
- Sales growth was supported by very strong momentum in Western Europe, North America, and Japan. In Asia-Pacific, sales were affected by new lockdowns in certain major Chinese cities.
- Online sales cntinued to grow during the quarter and accounted for 15% of total direct sales.
Gucci: solid growth
In the first quarter of 2022, Gucci’s revenue amounted to €2,591 million, an increase of 20% as reported and 13% on a comparable basis.
Sales generated in directly operated stores grew 15% on a comparable basis relative to the first quarter of 2021. Sales momentum remained very strong with local customers in North America and Western Europe in particular. Performance in Asia-Pacific was more mixed due to new Covid-related lockdown measures at the end of the period, notably in Mainland China.
Wholesale revenue fell 2% on a comparable basis. The rationalization of this sales channel is now complete.
Yves Saint Laurent: new peaks
Yves Saint Laurent had an exceptional start to the year with revenue of €739 million, up 43% as reported and up 37% on a comparable basis.
Sales in directly operated stores rose sharply, up 49% on a comparable basis, with double-digit growth in all product categories. That excellent momentum was driven by spectacular performances in Western Europe and North America.
Revenue from wholesale, which is being streamlined, rose 10% on a comparable basis.
Bottega Veneta: further outstanding performance
Bottega Veneta’s revenue totaled €396 million in the first quarter, up 21% as reported and up 16% on a comparable basis, on a high comparison base. Relative to the first quarter of 2019, sales were up 59% on a comparable basis.
Activity was sustained in directly operated stores, with sales up 18% on a comparable basis in the first quarter, driven by very good performances in Western Europe, North America, and Japan.
Bottega Veneta’s wholesale channel, which is also being optimized, delivered revenue growth of 10% on a comparable basis.
Other Houses: an excellent start to the year
Kering’s Other Houses posted an extremely strong first quarter, with revenue of €973 million, up 35% both as reported and on a comparable basis, with scope and foreign exchange impacts canceling each other out. Each House delivered double-digit growth. Sales from directly operated stores rose 45% on a comparable basis, while wholesale revenue was up 22%.
Balenciaga and Alexander McQueen pursued their outstanding growth, driven by all regions. Brioni continued to grow, and the Jewelry Houses maintained their exceptional momentum.
Kering Eyewear and Corporate*
First quarter revenue of Kering Eyewear & Corporate totaled €308 million, including Kering Eyewear total revenue of €300 million, up 36% on a comparable basis.
*The "Corporate & Other" segment has been renamed “Kering Eyewear & Corporate”, intra-group eliminations being henceforth reported under a separate line item.
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 2021, Kering had over 42,000 employees and revenue of €17.6 billion.
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