Kering, the luxury conglomerate known for brands like Gucci, Saint Laurent, and Balenciaga, has announced impressive results for 2021 and the fourth quarter. The company experienced significant revenue growth compared to the previous year and even surpassed pre-pandemic levels.
In 2021, Kering’s group revenue reached €17.645 million, marking a 35% increase from the previous year and a 13% increase compared to 2019. The company’s recurring operating income also saw a remarkable rise of 60% and reached a new record of €5.017 billion. This exceptional growth can be attributed to the outstanding performances of its brands, which generated a total revenue of €17.019 billion, up 34% from the previous year and 35% on a comparable basis.
Kering’s retail network, including its e-commerce operations, experienced a 40% increase in revenue on a comparable basis. Sales growth in the fourth quarter accelerated even further, rising by 39% compared to the previous year and 34% compared to two years ago. The online sales channel continued to thrive, with a remarkable 55% increase. The penetration rate of online sales doubled within two years and now accounts for 15% of total sales in Kering’s retail network.
Wholesale revenue also witnessed a significant boost, increasing by 17% on a comparable basis year-on-year. However, compared to 2019, wholesale revenue declined by 3%. This decline is aligned with the company’s exclusive approach to distribution. The recurring operating income from Kering’s various brands amounted to €5.175 billion, with a recurring operating margin surpassing 30%. Despite these impressive achievements, Kering’s brands continued to invest heavily in their operations.
During the fourth quarter, Kering surpassed expectations with sales rising by 31.9% on a comparable basis, reaching €5.41 billion. Gucci, in particular, outperformed predictions, exceeding the average forecast by analysts. François-Henri Pinault, the CEO and Chairman of Kering, praised the year as “excellent” and expressed confidence in the group’s ability to maintain its momentum in 2022 and the years to come.
Analyzing the performance of individual brands, Gucci exhibited consistent growth, with revenue increasing by 31% to €9.731 billion. Sales within the retail network grew by 37% compared to 2020 and 10% compared to 2019, while wholesale revenue declined due to streamlining operations. Yves Saint Laurent also achieved record-breaking performances, with annual revenue surging by 46% to €2.521 billion. Bottega Veneta’s revenue surpassed €1.5 billion, representing a 25% increase from the previous year. Other brands within Kering’s portfolio, such as Balenciaga and Alexander McQueen, also delivered excellent performances.
Overall, Kering’s strong results showcase the resilience and allure of its luxury brands in a challenging market. The company’s ability to blend authenticity with bold creativity has allowed its brands to achieve remarkable sales growth and fortify their brand equity. With plans to continue investing and expanding in the future, Kering is well-positioned to maintain its prominent position within the luxury industry.
Useful Links:
– Kering Official Website
– Gucci Official Website
