Kering's Q3 revenues decline across brands

Kering Group revenue of 4.5 billion euros in the third quarter of 2023, was down 13 percent as reported and down 9 percent on a comparable basis, with revenues declining across its brand portfolio.

In the first nine months of the year, the Group generated revenue of 14.6 billion euros, down 3 percent reported and 2 percent on a comparable basis.

“Beyond the challenging macroeconomic conditions and softening demand across the luxury industry, the change in our revenue performance in the third quarter reflects the impact of our decisions to further elevate our brands and their distribution,” said François-Henri Pinault, chairman and CEO of Kering.

Kering posts revenue decline across core brands in Q3

The company’s revenue from the directly operated retail network fell 6 percent on a comparable basis, reflecting lower traffic and contrasted performances across regions.

Wholesale and other revenue fell sharply by 20 percent on a comparable basis, due to the group’s ongoing efforts to tighten its control over distribution.

In the third quarter, Gucci’s revenue amounted to 2.2 billion euros, down 14 percent as reported and 7 percent on a comparable basis. The company added that sales in the directly operated retail network fell 7 percent on a comparable basis during the quarter, with resilient performances in handbags and from the Valigeria collection. Wholesale revenue fell 17 percent on a comparable basis.

Yves Saint Laurent’s revenue amounted to 768 million euros, down 16 percent as reported and 12 percent on a comparable basis. Sales in the directly operated store network fell 4 percent on a comparable basis, while wholesale was down 38 percent on a comparable basis.

Bottega Veneta’s revenue totaled 381 million euros in the third quarter, down 13 percent as reported and 7 percent on a comparable basis. In the directly operated retail network, revenue fell by 2 percent on a comparable basis in the quarter. Wholesale revenue was down 30 percent on a comparable basis.

Revenue from the group’s other houses totaled 805 million euros, down 19 percent as reported and 15 percent on a comparable basis. Kering Eyewear revenue totaled 331 million euros, up 34 percent as reported due to the contribution of Maui Jim – and up 2 percent on a comparable basis.

Kering strengthens its board and top order with new appointments

The company’s board of directors appointed Maureen Chiquet as independent director for the remainder of Daniela Riccardi’s term of office. She joined Kering’s board in September 2023. Chiquet, a US citizen, has more than 35 years’ experience in the fashion and luxury goods sector, including nine years as global CEO of Chanel.

The company also announced a series of top appointments aimed at reinforcing stewardship of its houses and strengthening its organisation: - Francesca Bellettini, in addition to her current role as president and CEO of Yves Saint Laurent, which she has held since 2013, was appointed Kering deputy CEO in charge of brand development.

Jean-Marc Duplaix, Kering chief financial officer since 2012, was appointed Kering deputy CEO in charge of operations and finance. The company also announced the appointment of Armelle Poulou as chief financial officer effective September 1, 2023. Poulou joined the group in 2019 and at the time of the announcement was director of corporate finance, treasury and insurance. She continues to report to Duplaix.

Jean-François Palus, Kering group managing director, was appointed president and CEO of Gucci.

Commenting on the new appointments, Pinault said: “The organisation we put in place in July will enable us to strengthen the steering of our Houses in the current market environment and to reclaim our positions and influence.”

Seán McGirr joins as creative director of Alexander McQueen, Kering completes Creed acquisition

Alexander McQueen and its creative director Sarah Burton announced the end of their two decade collaboration.

Seán McGirr was appointed creative director of Alexander McQueen from October 3, 2023. McGirr was previously head of ready-to-wear at JW Anderson. He joined JW Anderson in 2020 to head up its men’s collections, eventually adding womenswear to his responsibilities. Prior to that, he was a women's designer for Dries Van Noten in Antwerp.

From 2014 to 2018, he was part of Uniqlo’s creative offices in Tokyo and Paris working on the men’s collections guided by Christophe Lemaire. He started his career assisting at Burberry and Vogue Hommes Japan.

Kering Beauté announced that it had completed the acquisition of the high-end luxury fragrance House Creed, in accordance with the terms disclosed on June 26, 2023, and following clearance from the antitrust authorities. Creed will be consolidated in Kering financial statements starting November 1, 2023.

“With the acquisition of Creed completed last week, one of the world’s most distinguished high fragrance houses has joined our family, propelling our ambitions in beauty onto the next stage,” added Pinault.

Additionally, the company said that Kering and Mayhoola announced a binding agreement for the former to buy a 30 percent shareholding in Valentino for a cash consideration of 1.7 billion euros. The agreement includes an option for Kering to acquire 100 percent of Valentino's share capital no later than 2028.