Kering, a French luxury fashion conglomerate, has reported a revenue of €19.6 billion for the fiscal 2023 (FY23), marking a 4 per cent year-on-year (YoY) decrease. This decline includes significant impacts from changes in exchange rates and the scope of consolidation, with a 2 per cent decrease on a comparable basis.
Wholesale and other revenue saw an 11 per cent decline on a comparable basis, as Kering further solidified the exclusivity of its houses’ distribution networks. Recurring operating income fell to €4.7 billion, a 15 per cent decrease from FY22, with the recurring operating margin settling at 24.3 per cent versus 27.5 per cent the previous year. The group’s net income attributable amounted to €3 billion for FY23, Kering said in a press release.
Breaking down the performance by brand, Gucci recorded €9.9 billion in revenue, a 6 per cent decrease as reported and 2 per cent down on a comparable basis. Directly operated retail network sales, which form 91 per cent of Gucci’s revenue, decreased by 2 per cent on a comparable basis, while wholesale revenue dipped by 5 per cent.
Yves Saint Laurent reported a revenue of €3.2 billion, down 4 per cent as reported and 1 per cent on a comparable basis. The brand saw a 4 per cent increase in sales from its directly operated retail network, whereas wholesale revenue fell by 26 per cent on a comparable basis.
Bottega Veneta’s revenue stood at €1.6 billion, marking a 5 per cent decrease as reported and a 2 per cent decline on a comparable basis. Sales from its directly operated retail network increased by 4 per cent, aligning with the house’s strategic focus, while wholesale revenue decreased by 24 per cent.
Revenue from other houses amounted to €3.5 billion, down 9 per cent as reported and 8 per cent on a comparable basis. Sales from the directly operated retail network increased by 3 per cent, but wholesale revenue experienced a 29 per cent decline.
“In a trying year for the group, we strengthened our organisation and took significant steps to further enhance the visibility and exclusivity of our houses. 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,” said Francois-Henri Pinault, chairman and chief executive officer.
In the fourth quarter of FY23 (Q4 FY23), Kering’s revenue decreased by 6 per cent as reported and 4 per cent on a comparable basis, with sales from the directly operated retail network dropping by 2 per cent. However, there was growth in Asia-Pacific and Japan, with improving trends in Western Europe and North America.
Gucci’s Q4 revenue decreased by 4 per cent on a comparable basis, with directly operated retail network sales also down by 4 per cent. Yet, wholesale revenue in Q4 increased by 3 per cent on a comparable basis. Yves Saint Laurent’s Q4 performance showed stability in directly operated retail network sales, despite a 5 per cent decline on a comparable basis overall. Bottega Veneta’s sales were down 4 per cent on a comparable basis, and up 5 per cent in the directly operated retail network. Sales from the other houses dropped 5 per cent on a comparable basis, while sales from the directly operated retail network were up 4 per cent.
Fibre2Fashion News Desk (DP)
