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Kering

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Kering
FormerlyPinault S.A.
Pinault-Printemps-Redoute
PPR
Company typePublic(Société Anonyme)
Euronext Paris:KER
CAC 40component
ISINFR0000121485Edit this on Wikidata
IndustryLuxury
Founded1962;62 years ago(1962)
FounderFrançois Pinault
Headquarters40 rue de Sèvres, Paris 7e, France
Key people
François-Henri Pinault
(ChairmanandCEO)
ProductsLuxury goods
RevenueDecrease€19.57 billion (2023)
Decrease€4.75 billion (2023)
Decrease€3.06 billion (2023)
Total assetsIncrease€41.37 billion (2023)
Total equityIncrease€16.01 billion (2023)
Number of employees
49,000 (2023)
Subsidiaries
Websitekering
Footnotes / references
[1]

Kering(French:[kɛːʁiŋ]) is a French-basedmultinational corporationspecializing inluxury goods.It owns the brandsGucci,Balenciaga,Bottega Veneta,Yves Saint Laurent,CreedandAlexander McQueen.

The timber-trading companyPinault S.A.was founded in 1962, byFrançois Pinault.After the company was quoted onEuronext Parisin 1988, it became the retail conglomerate Pinault-Printemps-Redoute (PPR) in 1994, and the luxury group Kering in 2013. The group has been a constituent of theCAC 40since 1995.François-Henri Pinaulthas been president and CEO of Kering since 2005. In 2023, the group's revenue reached €19.6 billion.

History

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Timber (1962-1988)

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Main article:François Pinault

In 1962,François Pinaultopened theÉtablissements PinaultinBrittany(France) specialized in timber trading with a 100,000 francs loan from the bank.[2]His business grew rapidly by acquiring many failing local timber operations and building its own import bridges, turning Pinault S.A. into a leading timber trader in France in the 1980s. By 1988, the group owned 180 companies and 33 factories for an annual revenue of 10 billion francs.[3]

Retail (1988-2013)

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In 1988, Pinault S.A. was listed on theParis Stock Exchange.[2]In 1989, Pinault S.A. purchased 20% of CFAO, a French distribution conglomerate active throughout Africa. In 1990, Pinault S.A. and CFAO merged, and François Pinault became head of the newly formed group which acquiredConforama(French furniture retailer) in 1991,Printemps(department stores in France) in 1992, which also owned 54% ofLa Redoute(French mail-order shopping retailer), andFnac(French bookstore, multimedia and electronics retailer) in 1994. The group was renamed Pinault-Printemps-Redoute in 1994.[2]

In 1999, Pinault-Printemps-Redoute purchased a controlling 42% stake of theGucci groupfor $3 billion and 100% ofYves Saint Laurent.[4][5][6]Through Gucci, Pinault-Printemps-Redoute acquiredBoucheronin 2000,[7]Bottega Venetain 2001,[8]Balenciagain 2001,[9]and signed partnerships withAlexander McQueen[10]andStella McCartney.[11]In 2003, François-Henri Pinault, son of the founder François Pinault, became general manager of Artémis, the family holding company that controlled Pinault-Printemps-Redoute. In 2005, he was named president and CEO of Pinault-Printemps-Redoute,[12]a year after the group had reached a 99.4% ownership ofGucci.[13]The group continued acquiring luxury brands:Sowind Group(watch company owner ofGirard-Perregaux)[14]andBrioni(Italian tailor) in 2011,[15]Pomellato Group (jewelry company owner ofPomellatoand Dodo)[16]andQeelin(jewelry) in 2012,[17]Christopher Kane(British fashion house)[18]andRichard Ginori(porcelain) in 2013,[19]Ulysse Nardin(watches) in 2014.[20]The group also sold its retail assets: Le Printemps in 2006,[21]Conforama in 2011,[22]CFAO in 2012,[23]Fnac in 2012, and La Redoute in 2013.[24]PPR developed a Sport & Lifestyle portfolio with the acquisition ofPumain 2007,[12]Cobra Golfin 2010,[25]andVolcomin 2011,[26]all of which were sold the following decade.[27]

Luxury (since 2013)

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In March 2013, PPR changed its name to Kering.[28]The leather-weaver Bottega Veneta was transformed into a "quiet luxury" icon, hitting the billion-dollar mark in sales in 2012.[29]In 2014, Kering created its own eyewear production arm, Kering Eyewear, growing its revenue to 1.5 billion euros in 2023, and acquired the eyewear brandsLindbergin 2021[30]andMaui Jimin 2022.[31]The traditional Balenciaga house was turned into a disruptive fashion house[32]and Yves Saint Laurent hit the 2-billion dollar sales mark in 2019.[33]However, from 2015 to 2022, the group's revenue was essentially driven by Gucci's year-on-year high performance, hitting the 10-billion dollars sales mark in 2022.[34]The group divested its interests inStella McCartneyin 2018,[35]Christopher Kane in 2019,[36]and its entire watch division (Girard-Perregaux and Ulysse Nardin) in 2022.[37]

In 2023, Kering's annual results declined to 19.6 billion (-4%), mainly caused by the deceleration of Gucci's streak, a transition phase according to the group's executives.[38]That same year, Kering Beauté was launched to manage in-house the development of beauty products for the group's brands.[39]

Activities

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Kering's headquarters are located in the former Hopital Laennec in the 7th arrondissement of Paris. The parent holding company of Kering isGroupe Artémis.In 2023, Kering made 19.6 billion euros in revenue. The group has 46,000 employees and 1,381 stores.[1]

Kering fully or partially owns the following brands:

Brand Acquisition Year Country
Gucci 1999[4] Italy
Yves Saint Laurent 1999[5] France
Boucheron 2000[7] France
Bottega Veneta 2001[8] Italy
Balenciaga 2001[9] Spain
Alexander McQueen 2001[10] UK
Brioni 2011[15] Italy
Qeelin 2012[17] China
Pomellato 2012[16] Italy
Dodo 2012[16] Italy
Ginori 1735

(formerlyRichard Ginori)

2013[19] Italy
Lindberg 2021[30] Denmark
Maui Jim 2022[31] United States
Creed 2023[40] UK/France
Valentino(30%) 2023[41] Italy

Kering also owns Kering Eyewear (luxury eyewear production arm)[42]and Kering Beauté (cosmetics division).[39]

Governance

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François-Henri Pinaultis the chairman of the board of Kering.

Financial data

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Results (in € millions)
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2023
Sales 17 931 17 761 20 201 16 525 11 008 12 227 9 736 9 748 10 037 11 584 12 385 15 478 13 665.2 15 883.3 13 100.2 19 566
EBITDA 1 540 2 096 2 140 1 790 1 649 1 911 2 067 1 750 1 647 1 886 2 948 3 943.8 4 778.3 4 574.2
Net results 680 1 058 924 985 965 986 1 048 50 528.9 696 814 1 786 3 714.9 3 211.5 1 972.2 2 983
Net debt 3 461 6 121 5 510 4 367 4 000 3 395 2 491 3 443 4 679 4 371 3 049

Commitments

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The Kering Foundation was created in 2008 to combatviolence against women.Kering was one of the first companies to endorse the Women's Empowerment Principles of theUN Women.[43]Starting in 2019, the Kering Foundation developed actions to combatviolence against children,making it a pillar of its operations in 2023.[44]

In 2015, Kering became an official partner of theCannes Film Festivaland launched the diversity programWomen in Motion[45]which was extended to the Rencontres d'Arles photography festival[46]and theTokyo Film Festivalin 2019.[47]

In 2015, the group released theenvironmental profit and loss account(EP&L).[48]Kering launched the Regenerative Fund for Nature in 2021 to finance the transition toregenerative farmingpractices[49]and the Climate Fund for Nature in 2022 to financenature conservationandrestorationinitiatives.[50]

In May 2024, Kering partenered with theNational University of Singaporeto create, via the entity's Center for Governance and Sustainability, a tool for measuring the environmental impact of companies in theAsia-Pacific region.This collaboration seeks to establish a benchmark for measuring the impact of the green strategies of major Asia-Pacific companies.[51]

Social entrepreneurs sponsorship

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Each year, three social entrepreneurs are selected for the economic viability and the social added value of their projects in favor of women, their families and communities. Each selected project proposer is awarded 15 000 euros, and also receives personal and business sponsoring as well as guidance from a Kering staff member.

Awards

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  • 2023: Biodiversity and Water Award at the CNMI Sustainable Fashion Awards for its regenerative practices.[52][53]

See also

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References

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  1. ^ab2023 Annual results,9 February 2024
  2. ^abcGuardian Staff (3 April 1999)."From timber merchant to corporate axeman".The Guardian.ISSN0261-3077.Retrieved25 August2019.
  3. ^"François Pinault et sa stratégie d'entreprise: toujours se démarquer".mediaclip(in French). 21 May 1988.Retrieved2 July2024.
  4. ^ab"Gucci Group Agrees to Sell 40% Stake to French Retailer".Los Angeles Times.20 March 1999.Retrieved24 July2017.
  5. ^abSri Ramakrishnan (16 November 1999)."Gucci to Buy Parent Of Yves Saint Laurent".Washingtonpost.Retrieved24 July2017.
  6. ^"Gucci fades on court ruling".Cnn.27 May 1999.Retrieved24 July2017.
  7. ^ab"GUCCI BUYS AGAIN: DEAL FOR BOUCHERON BOOSTS JEWELRY UNIT".WWD.24 May 2000.Retrieved1 May2024.
  8. ^ab"GUCCI STRIKES AGAIN: BUYS MAJORITY SHARE OF BOTTEGA VENETA".WWD.8 February 2001.Retrieved1 May2024.
  9. ^abFinch, Julia (7 July 2001)."Gucci liked the designer so much it bought Balenciaga".The Guardian.ISSN0261-3077.Retrieved1 May2024.
  10. ^abBellafante, Ginia (5 December 2000)."Gucci secures a deal with Alexander McQueen".The New York Times.ISSN0362-4331.Retrieved1 May2024.
  11. ^McNeil, Peter; Riello, Giorgio (19 May 2016).Luxury: A Rich History.Oxford University Press. p. 256.ISBN9780191640278.
  12. ^abJoshua Levine (15 February 2013)."The Man Behind the Curtain".The New York Times.Retrieved24 July2017.
  13. ^Suzanne Kapner (23 March 2004)."PPR moves to buy last 30% of Gucci Group".Nypost.Retrieved24 July2017.
  14. ^"PPR becomes majority shareholder of Sowind Group".Reuters.5 July 2011.Retrieved2 July2024.
  15. ^abChristina Passariello (8 November 2011)."PPR Buys Menswear Brand Brioni".Wsj.Retrieved24 December2013.
  16. ^abcLuisa Zargani, Miles Socha (24 April 2013)."Kering Acquires Pomellato".Wwd.Retrieved24 July2017.
  17. ^ab"PPR acquires majority stake in Chinese Qeelin".Fashiounited.9 December 2012.Retrieved24 July2017.
  18. ^Ella Alexander (15 January 2013)."PPR Buys Majority Stake In Christopher Kane".Vogue.co.uk.Retrieved24 July2017.
  19. ^ab"Gucci offers to buy Richard Ginori porcelain maker for 13 million euros".Reuters.5 April 2013.Retrieved1 May2024.
  20. ^Elizabeth Doerr (30 July 2014)."Kering (Previously PPR, Gucci Group) Acquires Ulysse Nardin".Forbes.Retrieved24 July2017.
  21. ^Sara Gay Forden, Jacqueline Simmons (20 June 2006)."As sales fall, PPR works to unload Printemps".The New York Times.Retrieved24 July2017.
  22. ^"PPR Looks to Sell Conforama".The Wall Street Journal.Archivedfrom the original on 11 June 2022.
  23. ^"Toyota Tsusho to buy PPR stake in CFAO".Reuters.Archivedfrom the original on 11 June 2022.
  24. ^PPR says in talks to sell La Redoute by year-end
  25. ^"Puma acquires Cobra Golf and announces becoming Cobra-Puma Golf".Worldgolf.10 May 2010.Retrieved24 July2017.
  26. ^Chris V. Nicholson (2 May 2011)."PPR to Buy Volcom, a Sportswear Maker".The New York Times.Retrieved24 July2017.
  27. ^Beth Wright (16 May 2018)."Kering officially spins off Puma".Just-style.Archived fromthe originalon 13 November 2019.Retrieved19 June2018.
  28. ^Jolly, David (22 March 2013)."PPR to Show Breton Roots With Rebranding as Kering".The New York Times.Retrieved22 November2023.
  29. ^Zargani, Luisa (22 February 2013)."Sales, Profits Up at Bottega Veneta in 2012".WWD.Retrieved2 July2024.
  30. ^abMira, Nicola (9 July 2021)."Kering Eyewear buys 100% stake in Danish brand Lindberg".FashionNetwork.Retrieved30 September2021.
  31. ^ab"Kering Eyewear acquires Hawaiian eyewear brand Maui Jim".The Moodie Davitt Report.14 March 2022.Retrieved14 March2022.
  32. ^Jess Cartner-Morley (2 October 2016)."Demna Gvasalia reinvigorates Balenciaga with strategic disrespect".Theguardian.Retrieved24 July2017.
  33. ^Guyot, Olivier (17 February 2020)."Saint Laurent franchit la barre des 2 milliards d'euros".FashionNetwork(in French).Retrieved2 July2024.
  34. ^Garnier, Juliette (22 September 2023)."After undergoing intense reinvention, Gucci searches hard for a second coming".Le Monde.fr.Retrieved2 July2024.
  35. ^Ben Stevens (29 March 2018)."Kering offloads entire stake in Stella McCartney".Retailgazette.co.uk.Retrieved19 June2018.
  36. ^Agnew, Harriet (21 June 2018)."Christopher Kane in talks to buy back brand from Kering".ft.Retrieved2 July2024.
  37. ^Sudip Kar-Gupta, Mimosa Spencer and Silke Koltrowitz,Luxury goods group Kering to sell watches division,Reuters,24 January 2022
  38. ^Danziger, Pamela N."Trouble In The House Of Gucci: Kering Struggles To Revive The Brand's Sparkle".Forbes.Retrieved1 May2024.
  39. ^abGuilbault, Laure (3 February 2023)."Kering enters beauty with new entity led by former Estée Lauder exec".Vogue Business.Retrieved1 May2024.
  40. ^Bossi, Andrea (26 June 2023)."Kering Makes First Major Beauty Acquisition".Fashionista.Retrieved22 November2023.
  41. ^"Kering acquisisce il 30% di Valentino per 1,7 miliardi di euro".ilsole24ore. ilsole24ore. 28 July 2023.Retrieved28 July2023.
  42. ^Gilles, Florent (18 November 2013)."Former Safilo CEO Roberto Vedovotto joins Kering".FashionNetwork.Retrieved25 October2022.
  43. ^Wynne, Alex (3 March 2016)."Kering Partners With UN Women".WWD.Retrieved1 May2024.
  44. ^Diderich, Joelle (20 September 2023)."Kering Foundation Expands Remit to Combat Violence Against Children".WWD.Retrieved1 May2024.
  45. ^Keslassy, Elsa (30 March 2015)."Cannes Film Fest, Kering Launch Women in Motion".Variety.Retrieved21 May2024.
  46. ^Diderich, Joelle (13 March 2019)."Kering Partners With Rencontres d'Arles Photography Festival".WWD.Retrieved2 July2024.
  47. ^Frater, Patrick (23 October 2019)."Kering and Tokyo Festival Bring 'Women in Motion' Talk Series to Japan".Variety.Retrieved8 June2024.
  48. ^Abnett, Kate (3 May 2016)."Kering Goes Public with Sustainability Report, Revealing Progress and Pain Points".Business of Fashion.Retrieved23 July2024.
  49. ^"Kering launches a new regenerative fund to support leather, cotton, wool and cashmere farmers".World Business Council for Sustainable Development (WBCSD).Retrieved1 May2024.
  50. ^"Kering, L'Occitane Group Launch €300 Million Nature Fund".The Business of Fashion.12 December 2022.Retrieved1 May2024.
  51. ^"Kering s'engage dans la transition écologique en Asie-Pacifique".Journal du Luxe.Retrieved15 May2024.
  52. ^"The CNMI Sustainable Fashion Awards 2023".Ellen MacArthur Foundation.Retrieved23 April2024.
  53. ^"Milan's Sustainable Fashion Awards Take Centre Stage At La Scala".Vogue.Retrieved23 April2024.
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