Kering, numbers falling. Pinault: “We're focusing on Gucci”

Kering, numbers down (but it was expected). Pinault: “We're focusing on Gucci”

Results decreased, but within expected margins. Therefore, the atmosphere is calm at 40 rue de Sèvres, the headquarters of the Kering group, where François-Henri Pinault discusses the data with some international journalists. As reported by Il Corriere della Sera, “We will continue to invest and strengthen our brands,” states Pinault, “A stop and go strategy would not be logical. We will continue with the transformation process of the group, which recently celebrated ten years, concentrating the attention on Gucci, taking advantage of its unique combination of craftsmanship, Italian tradition and modernity that characterizes the maison.”.

The Kering group, which includes Gucci, Saint Laurent, Balenciaga, Bottega Veneta, Boucheron, etc., closed 2023 with revenues of 19.6 billion euros, down 4% (2% on a comparable basis), and net profit of 2.983 billion euros, down 17%. In 2023, recurring operating profit was €4.7 billion, down 15% from 2022. However, these figures follow years of growth exceptional, as in the case of Saint Laurent, which has grown six times under the leadership of Francesca Bellettini.

The Paris Stock Exchange seems to have welcomed the 2023 results, despite the negative sign, and the stock recorded an increase of 14% yesterday. During the meeting, François-Henri Pinault underlined his strategy for moving the group forward. In 2013, with the transition from PPR to Kering, the group transformed itself into a major player in the luxury sector, with the aim of repositioning all its brands in the high segment of the market, while expanding its customer base.

This initial goal was achieved, as Pinault states: “We became very strong, and we still are, among aspirational consumers, for whom the purchase of a Gucci or Saint Laurent product represents a broader experience, a symbol of a lifestyle and a desire to belong to a certain social class.” However, after the pandemic, the purchasing power of this clientele has decreased and has not yet returned to previous levels, which partly explains the decrease in group revenues.

TOCurrently, Kering is committed to increasingly targeting customers with higher purchasing power, willing to spend considerable sums on high-quality products. “It's not simply about raising prices,” Pinault emphasizes, “but about improving product quality, raw materials and creative innovation, in order to justify the price increase.” According to François-Henri Pinault, 61 years old, at the helm of the group since 2005, “Our financial solidity allows us to continue on this upward trajectory, without forgetting our commitment to development sustainable“.