Kering’s recurring operating income rose by 11 per cent in FY22, reaching €5.6 billion, with a recurring operating margin of 27.5 per cent. Net profit attributable to the group amounted to €3.6 billion, up 14 per cent, while free cash flow from operations remained high at over €3.2 billion.
France’s Kering has posted a revenue of above €20 billion in FY22, representing a 15 per cent YoY growth as reported and a 9 per cent YoY rise on a comparable basis. The company’s directly operated retail network, which includes e-commerce sites, saw a 10 per cent YoY growth in revenue on a comparable basis, driven in particular by Western Europe and Japan.
In the fourth quarter (Q4) of FY22, total sales were down 2 per cent YoY as reported and 7 per cent on a comparable basis, with mixed performances across houses and regions, the company said in a press release.
Gucci, Kering’s flagship brand, saw revenue of €10.5 billion for FY22, up 8 per cent as reported and 1 per cent on a comparable basis. However, the brand’s Q4 FY22 revenue was down 14 per cent on a comparable basis relative to the same period in 2021, with sales dropping 15 per cent in directly operated stores due to the situation in China.
Yves Saint Laurent saw strong growth in FY22, with revenue amounting to €3.3 billion, up 31 per cent as reported and 23 per cent on a comparable basis. In the fourth quarter of FY22, sales rose 4 per cent YoY on a comparable basis, thanks to good performance in the directly operated retail network, where sales were up 7 per cent. Wholesale revenue declined 13 per cent YoY.
Furthermore, Bottega Veneta achieved a record year, with revenue of €1.7 billion, up 16 per cent as reported and 11 per cent on a comparable basis. Q4 FY22 sales were up 6 per cent YoY on a comparable basis, supported by good momentum in the directly operated retail network (up 4 per cent YoY) and in wholesale (up 13 per cent YoY).
Kering’s other houses, which includes brands like Balenciaga, Alexander McQueen, and Brioni, also saw sharp growth in 2022, with revenue amounting to €3.9 billion, up 18 per cent as reported and 16 per cent on a comparable basis. In Q4 FY22, revenue of other houses was down 4 per cent YoY on a comparable basis. Sales in the other houses’ directly operated retail network rose 2 per cent YoY during the quarter, driven by double-digit growth in Western Europe and Japan, while wholesale revenue was down 26 per cent YoY.
“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. Our 47,000 people share a strong entrepreneurial culture as well as values of responsibility and engagement. Together, we nurture the desirability and exclusivity of our brands, so they all achieve market positions commensurate with their unique heritage and recognised creativity. In an environment that remains uncertain, I have no doubt that 2023 will be another year of success for our houses and of growth for our group,” said Francois-Henri Pinault, chairman and chief executive officer.
Fibre2Fashion News Desk (DP)