Thursday, October 20, 2022
Very solid revenue growth in the third quarter of 2022
Group revenue: €5,137 million
Up 23% as reported and up 14% on a comparable basis
“Kering’s solid performances in the third quarter underscore the strength of the Group and the pertinence of our strategy. We delivered sharp top-line growth, both versus last year and from pre-pandemic levels. Our ongoing focus on the exclusivity of our brands and on the quality of their distribution are yielding very positive results and reinforce their positioning in their key markets. In an increasingly complex environment, we maintain the required flexibility to support our profitability and sustain our investments in the long-term outlook of all our Houses, Gucci first and foremost. We are as confident as ever in the potential and prospects of the Group.”
François-Henri Pinault, Chairman and Chief Executive Officer
- Group revenue in the third quarter of 2022 was up 23% as reportedand up 14% on a comparable basis compared to the third quarter of 2021.Versus the third quarter of 2019, comparable revenue was up 28%.
- Revenue in the directly operated store network continued to grow at a rapid pace, up 19% on a comparable basis. All regions posted growth. Western Europe (+74%) and Japan (+31%) achieved particularly outstanding performances. In North America (+1%), steady activity reflects the high comparison base together with the hefty contribution from American tourists to European sales momentum. Growth in AsiaPacific (+7%) was robust, despite the impact of Covid restrictions in Mainland China.
Gucci: continuing healthy growth
In the third quarter, Gucci’s revenue totaled €2,581 million, up 18% as reported and 9% on a comparable basis.
Sales generated in directly operated stores grew 9% on a comparable basis. Momentum remained very strong in Western Europe, supported by both local customers and tourists, particularly from the US. Conversely, this factor weighed activity in North America itself. In Japan, revenue rose sharply. Performance in Mainland China was mixed, impacting sales in Asia-Pacific, where overall trends posted a notable improvement
Wholesale revenue rose 2%. The rationalization of this channel is now complete.
Yves Saint Laurent: another stellar quarter
Yves Saint Laurent achieved an outstanding third quarter with revenue of €916 million, up 40% as reported and up 30% on a comparable basis.
Sales in directly operated stores rose sharply, up 38% on a comparable basis, driven by all product categories. Revenue in Western Europe more than doubled relative to the third quarter of 2021 due to the resumption of tourism and the House’s desirability with local customers. All other geographical zones saw strong growth.
Wholesale revenue rose 13% on a comparable basis.
Bottega Veneta: very healthy growth trajectory
Bottega Veneta’s revenue totaled €437 million in the third quarter, up 20% as reported and up 14% on a comparable basis.
Growth was driven by sales in directly operated stores, up 20% on a comparable basis, reflecting the excellent reception of Matthieu Blazy’s first collection. Performance was particularly remarkable in Western Europe and Japan.
Wholesale revenue fell 5%, in line with the House’s strategy of streamlining this channel.
Other Houses: further excellent performance
In the third quarter, revenue from Kering’s Other Houses totaled €995 million, an increase of 17% as reported and 13% on a comparable basis.
Revenue from directly operated stores grew sharply, up 43% on a comparable basis. Sales at Balenciaga and Alexander McQueen were particularly buoyant across all product categories. Brioni continued its rebound. Boucheron and Pomellato once again posted very good performances. Qeelin held out well against the complex operating environment in China.
Wholesale revenue was down 25% reflecting the Houses’ strategy to reduce the contribution of this channel, as well as calendar phasing effects.
Kering Eyewear and Corporate*
Third-quarter revenue from Kering Eyewear and Corporate amounted to €253 million. Kering Eyewear achieved total sales of €246 million, up 23% on a comparable basis. Growth was sustained across all regions and distribution channels, with significant contributions from Gucci and Cartier and sharp growth in all brands. Following the successful integration of Lindberg, the acquisition of Maui Jim has recently been completed.
* In the first quarter of 2022, the “Corporate and other” segment was renamed “Kering Eyewear and Corporate”. Intragroup eliminations are now reported on a separate line.
Stock Repurchase Program: launch of the fourth and final tranche
Pursuant to the Stock Repurchase Program announced on August 25, 2021, covering up to 2.0% of Kering’s share capital over a 24-month period, the Group signed a new stock repurchase agreement with an investment service provider.
This agreement corresponds to a fourth and final tranche of the program, covering a maximum volume of
650,000 shares, i.e., approximately 0.5% of Kering’s share capital as of October 15, 2022. The maximum price per share was set at €1,000 by the fifteenth resolution adopted in the Annual General Meeting of April 28, 2022. The purchase period provided for in the agreement started on October 24, 2022, and is scheduled to last until December 21, 2022 at the latest.
Part of the shares acquired under this fourth tranche are to be canceled. The remaining repurchased shares will be allocated to plans to grant bonus shares to certain Kering employees. The respective volumes will be determined at the end of the repurchase period.
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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