Kering Reports €5.077 Billion in Q1 2023 Revenue: Gradual Recovery Supported by New Retail Strategy
François-Henri Pinault, the CEO of Kering, noted that the performance of the luxury group in the first quarter was as expected, displaying a mix of results. However, he highlighted a progressive improvement in business activity over the period.
Gucci, a flagship brand within the group, is slowly bouncing back after a challenging fourth quarter in 2022, which saw a decline in sales of -14%. In the early months of this year, the renowned Italian fashion house achieved a revenue of €2.616 billion, experiencing a modest growth rate of +1%. Gucci’s performance benefited to some extent from the consumption rebound witnessed in Asia, particularly in China, which also positively impacted other players in the luxury industry.
The group’s other brands, including Balenciaga and Alexander McQueen, collectively generated €890 million in sales, representing a decline of -9%. In contrast, Saint Laurent stood out with a revenue of €806 million, showcasing a commendable growth rate of +8% on a comparable basis.
On the other hand, Bottega Veneta maintained stable sales during the same period, recording a revenue of €395 million. The brand’s success was largely driven by strategic investments in its own distribution network, as the company continues to restructure its physical retail presence.
Overall, the group emphasized its commitment to a retail strategy focused on consolidating sales within its proprietary channels. As part of this approach, Kering aims to reduce its dependence on wholesale, which resulted in a decline of -10% in this channel during the early months of the year. Conversely, the group’s directly operated stores, including e-commerce, showed positive growth of +4%, benefiting from revitalized retail networks and enhanced customer experiences.
