Kering posts mixed Q1 performance as DTC supports sales

French luxury group Kering has reported a 2% increase in revenue to £4.5 billion (€5 billion) for the first quarter of 2023, supported by growth from its direct-to-consumer channels. 

Revenue from directly operated stores, including e-commerce, increased 4% on a comparable basis, with all group houses contributing to growth. This was also largely driven by "good momentum" in Western Europe and Japan.

However, wholesale and other revenue was down 10% on a comparable basis, as the group’s houses continued to reduce the share of wholesale in their distribution.

Individual brand revenues

Gucci saw revenue rise 1% to £2.3 billion (€2.6 billion), with DTC growth from all key product categories such as handbags and women's ready-to-wear collections. Wholesales was down 7%.

Yves Saint Laurent revenue was up 9% to £714 million (€806 million). DTC shared "outstanding performances" in leather goods and ready-to-wear, together with the success of the brand's elevation strategy. Wholesale dropped 12%.

Bottega Veneta was stable year-on-year at £350 million (€395 million), helped by the continued overhaul of its directly operated store network with retail revenue up 5%. Wholesale decreased 14%.

The group's other houses, including Balenciaga and Alexander McQueen, reported a 9% drop in revenue to £788 million (€890 million). Direct-to-consumer rose 7% on a comparable basis, whilst wholesale was down 32%.

François-Henri Pinault, Chairman and CEO of Kering, said: “Kering’s performance in Q1 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.”

Earlier this year, Kering announced a commitment to reduce its absolute greenhouse gas emissions by 40% by 2035. It marks the next necessary step “to accelerate the implementation of the group’s vision of a modern and responsible luxury”.