Kering: Q1 revenues improve marginally by 1 percent

In the first quarter of 2023, Kering Group’s revenue grew by 2 percent as reported and by 1 percent on a comparable basis to 5,077 million euros, with trends improving throughout the period.

“Kering’s performance in the first quarter 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,” said François-Henri Pinault, Kering’s chairman and chief executive officer.

Kering posts 4 percent retail comparable sales growth

The company said in a statement that revenue in the directly operated store network, including e-commerce, rose by 4 percent on a comparable basis, with all group houses contributing to the growth.

The increase was driven by good momentum in Western Europe and Japan. Revenue was down in North America but resumed growth in Asia-Pacific due to the gradual recovery of the Chinese market.

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

Kering reports mixed performance across core fashion houses

In the first quarter, Gucci’s revenue amounted to 2,616 million euros, an increase of 1 percent both as reported and on a comparable basis.

The company added that sales in the directly operated store network grew 1 percent on a comparable basis, while wholesale revenue was down 7 percent on a comparable basis.

Yves Saint Laurent revenue of 806 million euros, was up 9 percent as reported and up 8 percent on a comparable basis. Sales in the directly operated store network rose 14 percent on a comparable basis, driven by leather goods and ready-to-wear. Wholesale revenue was down 12 percent on a comparable basis.

The company further said that Bottega Veneta’s first-quarter revenue was stable at 395 million euros, while wholesale revenue was down 14 percent on a comparable basis.

Kering’s other houses generated revenue of 890 million euros, down 9 percent as reported and on a comparable basis. Sales in the directly operated store network rose by 7 percent on a comparable basis, while wholesale revenue was down 32 percent on a comparable basis.

Kering Eyewear’s revenue amounted to 433 million euros, up 11 percent on a comparable basis, driven by the strong momentum of the brands in its portfolio. Revenue was up 44 percent as reported, due to the strong contribution of Maui Jim, consolidated in Kering’s financial statements since October 1, 2022. In the first quarter of 2023, Kering Eyewear announced the acquisition of UNT, a French manufacturer of high-precision components.