Kering Group revenues exceeded €20 billion in 2022, up 15% as reported and 9% on a comparable basis.
In the fourth quarter, total sales fell 2 percent as reported and 7 percent on a comparable basis, with mixed performance across homes and regions.
Group revenue from the directly managed retail network, which includes e-commerce sites, rose 10% on a like-for-like basis in 2022, mainly due to Western Europe and Japan.
Kering reports an 11% increase in recurring operating income, which reached 5.6 billion euros, while the recurring operating margin was 27.5%. Net profit was €3.6 billion, up 14%, while earnings per share rose 15%.
“All of our houses posted record revenues and contributed to higher operating income in 2022. But these strong performances were not evenly matched to our ambitions and capabilities. Despite the challenges faced by some of our Houses, especially towards the end of the year, we are convinced that we are following 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 Gucci’s 2022 revenue was 10.5 billion euros, up 8% reported and 1% on a comparable basis. Direct retail network sales increased 1 percent on a comparable basis and wholesale revenue was flat year over year.
In the fourth quarter, Gucci’s revenue fell 14 percent on a comparable basis compared to the same period in 2021. In directly operated stores, sales fell 15 percent from a very high base and were significantly impacted by the situation in China during the quarter.
Yves Saint Laurent’s 2022 revenue was €3.3 billion, up 31% as reported and 23% on a comparable basis. Sales from the House’s directly managed retail network increased by 28%, while wholesale revenue increased by 6%.
In the fourth quarter, sales rose 4 percent on a comparable basis, driven by performance in the directly managed retail network, where sales rose 7 percent, while wholesale revenue fell 13 percent.
Bottega Veneta’s 2022 revenue was €1.7 billion, up 16% as reported and 11% on a comparable basis. Growth came from its direct retail network, where sales were up 15 percent on a comparable basis, while wholesale revenue was flat year-over-year. Fourth-quarter sales rose 6% on a comparable basis, with directly managed retail sales up 4% and wholesale sales up 13%.
Kering records revenue growth in other business houses
2022 revenue from Other Homes was €3.9 billion, up 18% as reported and 16% on a comparable basis. Growth came from its direct retail network, where sales rose 27 percent on a comparable basis. Wholesale revenue was down 6 percent on a comparable basis.
In the fourth quarter, Other Home revenues fell 4 percent on a comparable basis. Sales at Other Houses’ directly managed retail network rose 2% during the quarter, driven by double-digit growth in Western Europe and Japan, while wholesale revenue fell 26%.
Kering Eyewear’s 2022 revenue hit the billion-euro mark, up 58 percent as reported and 27 percent on a comparable basis to 1.1 billion euros. This outstanding performance was confirmed in the fourth quarter, with revenue increasing 30 percent on a comparable basis.
At its meeting on February 14, 2023, Kering’s board of directors decided to ask shareholders to approve a dividend of €14 per share at the annual general meeting to be held on April 27, 2023. An interim dividend of €4.50 per share was paid on January 18, 2023 and if approved, the company added, a final dividend of €9.50 will be paid on May 4, 2023.