• Home
  • News
  • Business
  • 14 percent sales decline at Gucci impacts Kering's Q4 results

14 percent sales decline at Gucci impacts Kering's Q4 results

By Prachi Singh

loading...

Scroll down to read more

Business

Image: Gucci Paris

Kering Group revenue exceeded 20 billion euros in 2022, an increase of 15 percent as reported and 9 percent on a comparable basis.

In the fourth quarter, total sales were down 2 percent as reported and 7 percent on a comparable basis, with mixed performances across houses and regions.

The group’s revenue from the directly operated retail network, which includes e-commerce sites, rose 10 percent on a comparable basis in 2022, driven in particular by Western Europe and Japan.

Kering reports an 11 percent rise in recurring operating income, which reached 5.6 billion euros, while recurring operating margin was 27.5 percent. Net profit amounted to 3.6 billion euros, up 14 percent, while Earnings per share were up 15 percent.

“All our Houses posted record revenues and contributed to higher operating income in 2022. But these good performances were not uniformly up to our ambitions and potential. Beyond the challenges some of our Houses faced, notably towards the end of the year, we are convinced that we are pursuing the right strategy for the long term,” said François-Henri Pinault, chairman and CEO of Kering in a statement.

Kering posts mixed performance across core brands

The company said that Gucci’s 2022 revenue amounted to 10.5 billion euros, up 8 percent as reported and 1 percent on a comparable basis. Sales in the directly operated retail network grew 1 percent on a comparable basis and wholesale revenue was stable year-on-year.

In the fourth quarter, Gucci’s revenue was down 14 percent on a comparable basis relative to the same period in 2021. In directly operated stores, sales dropped 15 percent from a very high base and were significantly affected by the situation in China during the quarter.

Yves Saint Laurent’s 2022 revenue amounted to 3.3 billion euros, up 31 percent as reported and 23 percent on a comparable basis. Sales from the House’s directly operated retail network rose by 28 percent, while wholesale revenue was up 6 percent.

In the fourth quarter, sales rose 4 percent on a comparable basis, due to performance in the directly operated retail network, where sales were up 7 percent, while wholesale revenue declined 13 percent.

Bottega Veneta’s 2022 revenue amounted to 1.7 billion euros, up 16 percent as reported and 11 percent on a comparable basis. Growth was driven by the directly operated retail network, where sales rose 15 percent on a comparable basis, while wholesale revenue was stable year-on-year. Fourth quarter sales were up 6% on a comparable basis, with sales in the directly operated retail network up 4 percent and wholesale up 13 percent.

Kering records revenue growth in other business houses

2022 revenue from Other Houses amounted to 3.9 billion euros, an increase of 18 percent as reported and 16 percent on a comparable basis. Growth was driven by the directly operated retail network, where sales were up 27 percent on a comparable basis. Wholesale revenue was down 6 percent on a comparable basis.

In the fourth quarter, revenue of Other Houses was down 4 percent on a comparable basis. Sales in the Other Houses’ directly operated retail network rose 2 percent during the quarter, driven by double-digit growth in Western Europe and Japan, while wholesale revenue was down 26 percent.

Kering Eyewear’s 2022 revenue achieved the billion-euro mark, up 58 percent as reported and 27 percent on a comparable basis to 1.1 billion euros. This excellent performance was confirmed in the fourth quarter, with revenue up 30 percent on a comparable basis.

At its February 14, 2023 meeting, Kering’s board of directors decided to ask shareholders to approve a cash dividend of 14 euros per share at the annual general meeting to be held on April 27, 2023. An interim dividend of 4.50 euros per share was paid on January 18, 2023 and if approved, the company added, a final dividend of 9.50 euros would be paid on May 4, 2023.

Gucci
Kering