Kering’s annual revenue dips 4% amidst attempts to "revitalise" brands

Kering, the luxury house whose portfolio includes the likes of Gucci, Yves Saint Laurent and Bottega Veneta, has reported slipping revenues due to a "trying year".

In the fourth quarter of 2023, revenue was down 6% as reported and down 4% on a comparable basis.

As for 2023, annual revenue amounted to £16.7 billion (€19.6 billion), a decrease of 4% as reported and down 2% on a comparable basis.

DTC sales were stable on a comparable basis, while wholesale and other revenue fell 11% on a comparable basis. The company pointed to strengthening "the exclusivity of its Houses’ distribution" as the reason for stifled numbers.

2023 recurring operating income totalled £4 billion (€4.7 billion), down 15% from the year prior. Recurring operating margin was 24.3% in 2023 versus 27.5% in 2022. Net income amounted to £2.5 billion (€3 billion).

Brand Breakdown:

• Gucci's 2023 revenues totalled £8.4 billion (€9.9 billion), down 6% as reported and down 2% on a comparable basis. In the fourth quarter, Gucci’s revenue decreased 4% on a comparable basis.
• In 2023, Yves Saint Laurent’s revenue amounted to £2.7 billion (€3.2 billion), down 4% as reported and down 1% on a comparable basis. In the fourth quarter, sales were down 5% on a comparable basis.
• Bottega Veneta's revenue totalled £1.3 billion (€1.6 billion) in 2023, down 5% as reported and down 2% on a comparable basis. Sales in the fourth quarter were down 4% on a comparable basis.
• 2023 revenue from Other Houses amounted to £2.9 billion (€3.5 billion), down 9% as reported and down 8% on a comparable basis. In the fourth quarter, sales dropped 5% on a comparable basis, while sales from the directly operated retail network were up 4%. Wholesale revenue was down 30%.

François-Henri Pinault, Chairman and Chief Executive Officer of Kering, said: "In a trying year for the group, we strengthened our organization and took significant steps to further enhance the visibility and exclusivity of our Houses. We are focused on revitalising Gucci, leveraging the unique blend of craftsmanship, Italian heritage, and modernity that characterizes this iconic House.

"The launch of Kering Beauté and the acquisition of Creed, a storied maker of high-end fragrances, will enable us to capture our share of the steadily growing beauty market. In a market environment that remains uncertain in early 2024, our continuing investments in our Houses will put pressure on our results in the short term. Thanks to the experience gained across the group through a decade of outstanding expansion, we are confident in achieving our long-term ambitions."

Looking ahead, Kering plans to invest in the development of its Houses, so that they continuously strengthen their desirability by striking a perfect balance between "creative innovation and timelessness".