French luxury group Kering’s revenue rose 15% in FY22
Kering’s recurring operating income rose 11 percent to €5.6 billion in FY22, with a recurring operating margin of 27.5 percent. Net profit attributable to the group amounted to €3.6 billion, up 14 percent, while free cash flow from operations was over €3.2 billion.
France’s Kering posted revenue above 20 billion euros in FY22, representing a reported 15 percent YoY growth and 9 percent year-on-year growth on a comparable basis. The company’s directly operated retail network, which includes e-commerce sites, grew revenue by 10 percent year over year on a comparable basis, driven primarily by Western Europe and Japan.
In the fourth quarter (Q4) of FY22, total sales reported 2 percent YoY and 7 percent on a comparable basis, with mixed performance across homes and regions, the company said in a press release.
Gucci, Kering’s flagship brand, saw revenue of €10.5 billion for FY22, up 8 percent as reported and 1 percent on a comparable basis. However, the brand’s Q4 FY22 revenue fell 14 percent on a comparable basis compared to the same period in 2021, with sales at directly operated stores down 15 percent due to the situation in China.
Yves Saint Laurent saw strong growth in FY22, with revenues at €3.3 billion, up 31 percent on a reported basis and 23 percent on a comparable basis. In the fourth quarter of FY22, sales grew by 4 percent on a comparable basis, thanks to better performance in the directly operated retail network, where sales grew by 7 percent. Wholesale revenue declined 13 percent year over year.
Additionally, Bottega Veneta achieved a record year with revenues of €1.7 billion, up 16 percent as reported and 11 percent on a comparable basis. FY22’s Q4 sales rose 6 percent YoY on a comparable basis, supported by good momentum in the directly operated retail network (4 percent YoY) and wholesale (13 percent YoY).
Kering’s other houses, which include brands such as Balenciaga, Alexander McQueen and Bryoni, also saw sharp growth in 2022, with revenues of €3.9 billion, up 18 percent on a reported basis and 16 percent on a comparable basis. 4 In FY22, other house revenue declined by 4 percent YoY on a comparable basis. Sales at other houses’ directly operated retail networks rose 2 percent in the quarter, driven by double-digit growth in Western Europe and Japan, where wholesale revenue fell 26 percent year-on-year.
“All our houses posted record revenues and contributed to higher operating income in 2022 But these good performances were not equal to our ambition and potential Despite the challenges faced by some of our houses, especially towards the end of the year, we are confident that we are following the right strategy for the long term. Our 47,000 people share a strong entrepreneurial culture as well as values of responsibility and engagement. Together, we nurture the desirability and exclusivity of our brands, so they all achieve market positions consistent with their unique heritage and recognized creativity. In an uncertain environment, I have no doubt that 2023 will be another year of success for our house and for our group,” said François-Henri Pinault, Chairman and Chief Executive Officer.
Fibre2Fashion News Desk (DP)
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