Kering suffered with Gucci in Q4 2022

Photo credit © Gucci

( — The Group’s turnover Kering exceeded 20 billion euros in 2022, up 15% on a reported basis and +9% on a like-for-like basis. The network’s own activity, which includes e-commerce, grew by +10% on a comparable basis in 2022, notably supported by Western Europe and Japan.
In the fourth quarter of 2022, however, total sales were down -2% on a reported basis and -7% on a like-for-like basis, with contrasting performances depending on the Houses and geographic areas, as health restrictions in China weighed on the flagship brand. of the group, Gucci. The latter saw its sales fall by 14% (-10/11% consensus) like-for-like due to temporary store closures as part of Beijing’s “zero-COVID” policy.
In total, Kering’s operating profit in 2022 stands at 5.59 billion euros, up 11%, but the operating margin fell to 27.5% against 28.4% a year earlier.
Free operating cash flow remained at a high level, at more than 3.2 billion euros.

The CEO of the group François-Henri Pinault underlines performances “not all up to our ambitions and our potential”. The start of the year was “very encouraging” in China, tried to reassure Kering’s financial director, Jean-Marc Duplaix.
Gucci, the French group’s main profit center, saw its sales increase by only 1% like-for-like over the whole of the 2022 financial year, compared to double-digit increases for the other Kering brands such as Yves Saint Laurent (+ 23%) and Bottega Veneta (+11%).

For 2023, Kering expects a “profitable growth trajectory” despite the persistence of short-term economic and geopolitical uncertainties. It is aiming for high cash flow generation and high return on capital employed.

“All of our Houses recorded record sales in 2022 and contributed to the increase in operating income. But these good performances are not all up to our ambitions and our potential. Beyond the challenges our Houses have had to face face, especially at the end of the year, we are convinced of the relevance of our long-term strategy. Our 47,000 employees share a strong entrepreneurial culture and values ​​of responsibility and commitment. Together, we cultivate desirability and exclusivity of our brands, so that their positioning is commensurate with their unique heritage and recognized creativity. Although the environment remains uncertain, I have no doubt that 2023 will be another year of success for our Maisons and growth for the group” concluded François-Henri Pinault, Chairman and CEO of Kering.


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