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Kering

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Kering S.A.
FormerlyPinault S.A.
Pinault-Printemps-Redoute
PPR
Company typePublic (Société Anonyme)
Euronext: KER
CAC 40 Component
ISINFR0000121485 Edit this on Wikidata
IndustryLuxury
Founded1963; 61 years ago (1963)
FounderFrançois Pinault
Headquarters40 rue de Sèvres, Paris 7e, France
Key people
Francois-Henri Pinault
(Chairman and CEO)
ProductsLuxury goods
Revenue€15.9 billion (2019)
€4.78 billion (2019)
€2.3 billion (2019)
Total assets€27.148 billion (2019)
Total equity€10.438 billion (2019)
Number of employees
38,000 (2019)
Subsidiaries
Websitekering.com
Footnotes / references
[1]

Kering (French: [kɛːʁiŋ]) is an international group based in Paris (France) specialized in luxury goods and sustainability. Amongst the brands that Kering owns are Gucci and Yves Saint Laurent.

The timber-trading company Pinault S.A. was founded in 1963 by François Pinault. After the company was quoted on Euronext Paris in 1988, it became the retail conglomerate Pinault-Printemps-Redoute (PPR) in 1994, and the luxury group Kering in 2013. The group is a constituent of the CAC 40 since 1995. François-Henri Pinault is President and CEO of Kering since 2005. In 2019, the group's revenue reached €15.9 billion.[1]

History

From timber trading to retail

In 1963, with a loan from his family and a bank, François Pinault opened the Établissements Pinault in Brittany (France) specialized in timber trading. The company became Pinault S.A. and grew organically and through successful acquisitions. In 1988, Pinault S.A. was listed on the Paris 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. This accelerated its acquisitions in the retail sector: Conforama (French furniture retailer) in 1991, Printemps (department stores in Paris) in 1992, which also owned 54% of La Redoute (French mail-order shopping retailer), and Fnac (French bookstore, multimedia and electronics retailer) in 1994. To align with its new activities, the group was renamed Pinault-Printemps-Redoute in 1994.[2]

In 1999, Pinault-Printemps-Redoute purchased a controlling 42% stake of the Gucci group for $3 billion and 100% of Yves Saint Laurent.[3][4][5] Those acquisitions marked the cornerstone of the group's shift towards luxury. After Gucci, Pinault-Printemps-Redoute acquired Boucheron (2000), Bottega Veneta (2001), Balenciaga (2001), and signed strategic partnerships with Alexander McQueen and Stella McCartney.[6] In 2004, Pinault-Printemps-Redoute reached a 99.4% ownership of Gucci.[7]

From retail to luxury

In 2003, François Pinault handed over the helm of Artémis, the family holding company that controlled Pinault-Printemps-Redoute to his son François-Henri. In 2005, François-Henri Pinault became President and CEO of Pinault-Printemps-Redoute, succeeding to Serge Weinberg.[8] The group officially changed its name to PPR.[9] and kept on building a portfolio of luxury brands: The Sowind Group (owner of Girard-Perregaux) and Brioni (2011),[10] the Pomellato Group (Pomellato and Dodo, 2012),[11] Qeelin (2012),[12] Christopher Kane (2013),[13] Ulysse Nardin (2014).[14] To further this strategy, PPR offloaded its retail assets: Le Printemps (2006),[15] Conforama (2011),[16] CFAO (2012),[17] Fnac (2012), and La Redoute (2013).[18] PPR also developed a Sport & Lifestyle portfolio with the acquisition of Puma (2007),[8] Cobra Golf (2010),[19] and Volcom (2011).[20]. Cobra and Volcom are since then been divested (see the respective pages for details) and Kering only holds a minority share in Puma.

On 22 March 2013, PPR changed its name to Kering to fully achieve the group's shift towards luxury. Pronounced [kɛːʁiŋ], to sound like the English word "caring", the new name is a reference to the Pinault family's region of origin, Brittany, where kêr means "home". The new logo has an owl as its emblem, a bird that can rotate its head 270 degrees, giving it extraordinary vision, and François Pinault's favorite animal.[21][22]

In December 2014, Alessandro Michele, an unknown accessories designer, was named creative director of Gucci, and quickly revitalized the brand's creativity, fashion relevance, and profitability.[23][24] From 2014 to 2017, Gucci's sales doubled from 3,497.2 million euros to 6,211.2 million euros.[25] In 2015, following Hedi Slimane’s four-year success at the creative helm of Yves Saint Laurent, Kering named a new creative director, Anthony Vaccarello, to pursue the evolution of the brand while maintaining its growth pace.[26] In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga.[27] In 2013, the group took its eyewear activities in-house and launched Kering Eyewear. In March 2017, Richemont acquired 30% of Kering Eyewear and allowed Kering to acquire Cartier's eyewear plant in Sucy-en-Brie (France).[28]

In November 2018, the group announced the end of its collaboration with Yoox to open its proprietary ecommerce platform by 2020, [29] and launched a partnership with Apple to create new in-store mobile applications for the luxury sector.[30][31] The group announced its intention to branch into high-end jewelry by mid-2019[32] and opened the Torre Kering, the group's new Italian offices in a 11,000 m² building in Milan.[33]

In March 2018, Kering agreed to sell its shares of Stella McCartney back to its eponymous owner.[34] Kering became a luxury pure player after the sale of Puma (2018)[35] and Volcom (2019).[36] After the group built up its portfolio of luxury brands, it stopped acquisitions and capitalized on the organic growth of its newly-acquired assets.[37] In 2019, Kering made 15,383 billion euros in revenue, +16,2% from the previous year.[1]

From luxury to sustainability

In April 2012, Kering committed to a 4-year plan to significantly reduce its impact on the environment. The group developed the "Environmental Profit & Loss account" (E P&L) accounting method to track its progress.[38] In 2017, the group presented its new sustainability program which targeted a 40% reduction of its global environmental impact by 2025, a strategy aligned with the UN Sustainable Development Goals.[39][40]

In September 2013, Kering became part of the Dow Jones Sustainability Indices[41] and was named top sustainable textile, apparel and luxury goods corporation" in the Corporate Knights’ Global 100 index in 2018[42][43]

In February 2018, in partnership with the London College of Fashion, Kering launched the first online class (Mooc) in fashion and sustainability.[44] In October 2018, Kering started to implement the use of the first 100% traceable organic cotton.[45] In December 2018, with Plug and Play, Kering launched the Kering Sustainable Innovation Award to reward and invest in startups focused on sustainability and luxury.[46] Along with a dozen of fashion brands, Kering signed a United Nations (UN) charter in December 2018 pledging to become carbon-neutral by 2050,[47] and launched, with The Savory Institute, the first "regenerative sourcing" standard for fashion suppliers to measure the regenerative potential of raw materials and finished products.[48] In May 2019, as the group was releasing guidelines for dealing with animal welfare in the fashion industry[49] and banning models under 18 to represent adults in its shows,[50] the French President Emmanuel Macron appointed François-Henri Pinault to set new climate standards for the fashion and retail industry.[51] The "G7 Fashion Pact" was signed 3 months later by 32 global fashion corporations, right before being discussed at the 45th G7 summit.[52]

Activities

Description

Kering is an international group based in Paris (France) specialized in on luxury and fashion goods. Its portfolio includes luxury brands specialized in the design, the making and the sale of fine products, especially in the leather goods, shoes, ready-to-wear, watches and jewellery sectors:[53] Kering Eyewear (30%-owned by Richemont) produces glasses for the luxury sector.

Kering's headquarters are located in the former Hopital Laennec located in the 7th arrondissement of Paris and renovated by the group.[54] The parent holding company of Kering is Groupe Artémis.

Brands

Brand With Kering since Country
Gucci 1999 Italy
Yves Saint Laurent 1999 France
Boucheron 2000 France
Bottega Veneta 2001 Italy
Balenciaga 2001 Spain
Alexander McQueen 2001 UK
Brioni 2011 Italy
Girard-Perregaux 2011 Switzerland
JeanRichard 2011 Switzerland
Qeelin 2012 France
Pomellato 2012 Italy
Dodo 2012 Italy
Tomas Maier 2013 Germany
Christopher Kane 2014 UK
Ulysse Nardin 2014 Switzerland

Kering Foundation

Main article: Kering Foundation

The Kering Foundation is committed to defending women’s dignity and rights by combating violence against women and promoting women’s empowerment. Since 2009, the Foundation initiated 47 partnerships with NGOs and supported many social projects oriented towards women’s rights.

Many brands have their own philanthropic projects with the support of the Kering Foundation. Gucci launched its project Chime for Change, an international campaign to raise funds for women’s emancipation, focusing on education, health and justice.[55]

Every year since 2012, the Kering Foundation has contributed to the International Day for the Elimination of Violence against Women with the White Ribbon for Women campaign.[56] The 2018 campaign focused on gender-based cyberbullying.[57] In 2019 ,for its 10-year anniversary, the annual budget of the Foundation was doubled to $2 million.[58]

Women In Motion Awards

In 2015, Kering became an official partner of the Cannes Film Festival and launched Women in Motion to highlight the contribution of women to the film industry, in front and behind the camera. The program is based on talks where personalities share their recommendations for the advancement of women’s representation in the industry. The Women in Motion Awards are awarded annually to a person who embodies the role of women in the film industry, and another to a promising name in cinema.[59] The previous winners were:

In March 2019, the Women in Motion Awards was expanded to the Rencontres d'Arles photography festival.[63] In May 2019, the Cannes Partnership was renewed for five additional years.[64]

Governance

Board of Directors

Executive Committee

  • François-Henri Pinault - Chairman and CEO
  • Jean-François Palus - Group Managing Director
  • Francesca Bellettini - President and CEO Saint Laurent
  • Marco Bizzarri - President and CEO Gucci
  • Grégory Boutté : Chief Client and Digital Officer
  • Cédric Charbit : CEO Balenciaga
  • Marie-Claire Daveu - Chief Sustainability Officer and Head of Institutional Affairs
  • Valérie Duport - Chief Communications and Image Officer
  • Jean-Marc Duplaix - CFO
  • Béatrice Lazat - VP Human Resources
  • Bartolomeo Rongone - President and CEO Bottega Veneta
  • Roberto Vedovotto - CEO Kering Eyewear

Financial data

Results

in € millions
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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
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
Net results 680 1 058 924 985 965 986 1 048 50 528.9 696 814 1 786 3 714.9 3 211.5
Net debt 3 461 6 121 5 510 4 367 4 000 3 395 2 491 3 443 4 679 4 371 3 049

Market data

Years 2007 2008 2009 2010 2011 2012 2016 2017 2018
Number of shares (in millions) 128 128.4 126.5 126.8 127 126.2 126.2 126.3 126.3
Market capitalizations (in millions of Euros) 14089 5897 10 661 15 093 14 034 17 764 26,935 49 628 63,203
Number of daily transactions 692 022 1 116 420 701 105 453 415 385 265 317 960
  • Date of IPO: 25 October 1988, Second Marché
  • Shares listed on the Bourse de Paris
  • Member of the CAC 40 index since 9 February 1995
  • Nominal value = euro
  • Main shareholders: Artémis 40.8%

In September 2018, Kering joined the STOXX Europe 50 index.[68] In November 2018, the group announced the share repurchase of 1% of its share capital.[69]

See also

References

  1. ^ a b c Annual results 2019
  2. ^ a b Staff, Guardian (3 April 1999). "From timber merchant to corporate axeman". The Guardian. ISSN 0261-3077. Retrieved 25 August 2019.
  3. ^ "Gucci Group Agrees to Sell 40% Stake to French Retailer". Latimes.com. 20 March 1999. Retrieved 24 July 2017.
  4. ^ Sri Ramakrishnan (16 November 1999). "Gucci to Buy Parent Of Yves Saint Laurent". Washingtonpost.com. Retrieved 24 July 2017.
  5. ^ "Gucci fades on court ruling". Cnn.com. 27 May 1999. Retrieved 24 July 2017.
  6. ^ McNeil, Peter; Riello, Giorgio (19 May 2016). Luxury: A Rich History. Oxford University Press. p. 256. ISBN 9780191640278.
  7. ^ Suzanne Kapner (23 March 2004). "PPR moves to buy last 30% of Gucci Group". Nypost.com. Retrieved 24 July 2017.
  8. ^ a b Joshua Levine (15 February 2013). "The Man Behind the Curtain". Nytimes.com. Retrieved 24 July 2017.
  9. ^ François Pinault just gave $109 million to help rebuild the Notre-Dame. Meet the French billionaire who owns Christie’s and founded the luxury giant behind Gucci
  10. ^ Christina Passariello (8 November 2011). "PPR Buys Menswear Brand Brioni". Wsj.com. Retrieved 24 December 2013.
  11. ^ Luisa Zargani, Miles Socha (24 April 2013). "Kering Acquires Pomellato". Wwd.com. Retrieved 24 July 2017.
  12. ^ "PPR acquires majority stake in Chinese Qeelin". Fashiounited.com. 9 December 2012. Retrieved 24 July 2017.
  13. ^ Ella Alexander (15 January 2013). "PPR Buys Majority Stake In Christopher Kane". Vogue.co.uk. Retrieved 24 July 2017.
  14. ^ Elizabeth Doerr (30 July 2014). "Kering (Previously PPR, Gucci Group) Acquires Ulysse Nardin". Forbes.com. Retrieved 24 July 2017.
  15. ^ Sara Gay Forden, Jacqueline Simmons (20 June 2006). "As sales fall, PPR works to unload Printemps". Nytimes.com. Retrieved 24 July 2017.
  16. ^ PPR Looks to Sell Conforama
  17. ^ Toyota Tsusho to buy PPR stake in CFAO
  18. ^ PPR says in talks to sell La Redoute by year-end
  19. ^ "Puma acquires Cobra Golf and announces becoming Cobra-Puma Golf". Worldgolf.com. 10 May 2010. Retrieved 24 July 2017.
  20. ^ Chris V. Nicholson (2 May 2011). "PPR to Buy Volcom, a Sportswear Maker". Nytimes.com. Retrieved 24 July 2017.
  21. ^ "PPR to Show Breton Roots With Rebranding as Kering". Retrieved 9 November 2018.
  22. ^ Anthony DeMarco (18 June 2013). "It's Official: PPR Becomes Kering; Reportedly In Talks To Acquire Richard Mille". Forbes.com. Retrieved 24 July 2017.
  23. ^ Harriet Agnew (10 February 2017). "Kering reports strongest revenue growth since 2012". Ft.com. Retrieved 24 July 2017.
  24. ^ Robert William (26 April 2017). "Gucci's Latest Revival Fueled by Sequins Rather Than Sex". Bloomberg.com. Retrieved 24 July 2017.
  25. ^ Limei Hoang (27 October 2016). "Marco Bizzarri on Gucci's Remarkable Turnaround". Businessoffashion.com. Retrieved 20 June 2018.
  26. ^ Maura Brannigan (10 February 2017). "10 months after Hedi Slimane's departure, Yves Saint Laurent is still Kering's big money-maker". Fashionista.com. Retrieved 24 July 2017.
  27. ^ Jess Cartner-Morley (2 October 2016). "Demna Gvasalia reinvigorates Balenciaga with strategic disrespect". Theguardian.com. Retrieved 24 July 2017.
  28. ^ Deeny, FashionNetwork com,Godfrey. "Kering inks eyewear partnership with Cartier". FashionNetwork.com. Retrieved 7 April 2019.{{cite web}}: CS1 maint: multiple names: authors list (link)
  29. ^ Sarah White; Pascale Denis (25 November 2018). "Kering takes e-commerce in-house in online luxury battle". Reuters.com. Retrieved 8 January 2018.
  30. ^ "Grupo francés Kering se alía con Apple". CNN (in European Spanish). 27 November 2018. Retrieved 7 April 2019.
  31. ^ "Luxury goods group Kering steps up digital strategy with new Apple..." Reuters. 26 November 2018. Retrieved 7 April 2019.
  32. ^ "Gucci to add sparkle with high-end jewels, Kering's Pinault says". Reuters. 30 November 2018. Retrieved 7 April 2019.
  33. ^ "Il colosso del lusso sbarca a Milano, ecco la 'Torre Kering': 9 piani per 11mila metri quadrati". MilanoToday (in Italian). Retrieved 7 April 2019.
  34. ^ Ben Stevens (29 March 2018). "Kering offloads entire stake in Stella McCartney". Retailgazette.co.uk. Retrieved 19 June 2018.
  35. ^ Beth Wright (16 May 2018). "Kering officially spins off Puma". Just-style.com. Retrieved 19 June 2018.
  36. ^ "ABG grabs Volcom from Kering". Retail Dive. Retrieved 7 April 2019.
  37. ^ Comment Kering est devenu un "pure player du luxe"
  38. ^ Kate Abnett (3 May 2016). "Kering Goes Public with Sustainability Report, Revealing Progress and Pain Points". Businessoffashion.com. Retrieved 24 July 2017.
  39. ^ Elizabeth Paton (25 January 2017). "François-Henri Pinault, Kering Chief, on Why Green Is the New Black". Nytimes.com. Retrieved 24 July 2017.
  40. ^ Libby MacCarthy (26 January 2017). "Kering to Transform Luxury Industry with Next-Gen Sustainability Strategy". Sustainablebrands.com. Retrieved 24 July 2017.
  41. ^ Monica Karski (17 September 2015). "Kering still industry leader in Dow Jones Sustainability Indices". Fashionnetwork.com. Retrieved 24 July 2017.
  42. ^ Geoghegan, 24 January 2018By Jill. "Kering named most sustainable luxury fashion firm". Drapers. Retrieved 7 April 2019.{{cite web}}: CS1 maint: numeric names: authors list (link)
  43. ^ Lorelei Marfil (23 January 2018). "Kering Named Most Sustainable Global Corporation". Wwd.com. Retrieved 20 June 2018.
  44. ^ Sarah Karmali (20 February 2018). "Kering launches first online course in luxury fashion and sustainability". Harpersbazaar.com. Retrieved 20 June 2018.
  45. ^ Abdulla, Hannah (15 October 2018). "Pioneering partnership on traceable organic cotton for Kering". Just-Style. Retrieved 16 October 2018.
  46. ^ Marjorie van Elven (10 December 2018). "Kering teams up with Plug and Play to launch sustainability award in China". Fashionunited.uk. Retrieved 8 January 2019.
  47. ^ "Dozens of big-name fashion brands pledge to become carbon-neutral by 2050". Edie.net. 10 December 2018. Retrieved 8 January 2019.
  48. ^ "Kering launches first 'regenerative sourcing' standard for fashion suppliers". Edie.net. 11 December 2018. Retrieved 8 January 2019.
  49. ^ "French fashion group Kering sets guidelines on animal welfare". Reuters. 13 May 2019. Retrieved 25 August 2019.
  50. ^ Pinnock, Olivia. "Kering Group Bans Working With Models Under 18". Forbes. Retrieved 25 August 2019.
  51. ^ Campbell, Maeve (17 May 2019). "Macron hires Kering CEO to improve sustainability of luxury fashion". living. Retrieved 25 August 2019.
  52. ^ "Fashion Companies Reach Landmark Sustainability Accord Ahead of G7 Summit". Fortune. Retrieved 25 August 2019.
  53. ^ "Recurring operating income breakdown by activity (2016)". Kering.com. Retrieved 24 July 2017.
  54. ^ Kering, Balenciaga Unveil Tranquil Headquarters — Lavender Included
  55. ^ "Chime For Change Campaign, Beyoncé Launch Initiative To Help Girls Run The World". huffingtonpost.com. 3 January 2013. Retrieved 3 January 2013.
  56. ^ Josh Lee (18 November 2016). "Why you should support the White Ribbon campaign". Gq-magazine.co.uk. Retrieved 24 July 2017.
  57. ^ Eleonor Davies (16 November 2018). "Join GQ in taking a stand against cyberbullying". Gq-mqgqzine.co.uk. Retrieved 8 January 2019.
  58. ^ "Kering Foundation Celebrates 10th Anniversary of Supporting #MeToo-Related Causes". The Hollywood Reporter. Retrieved 7 April 2019.
  59. ^ "Women in Motion - Cannes International Film Festival". Businessoffashion.com. Retrieved 20 June 2018.
  60. ^ "Kering & The Festival De Cannes Will Present The 2017 Women in Motion Award to Isabelle Huppert". Ikon London Magazine. 5 May 2017. Retrieved 23 February 2018.
  61. ^ Stewart Clarke (4 May 2018). "'Wonder Woman' Director Patty Jenkins to Receive 2018 Women in Motion Award". Variety.com. Retrieved 20 June 2018.
  62. ^ Rizzo, Carita; Rizzo, Carita (15 May 2019). "Kering's Women in Motion Program Expands Scope for Cannes". Variety. Retrieved 25 August 2019.
  63. ^ Diderich, Joelle; Diderich, Joelle (13 March 2019). "Kering Partners With Rencontres d'Arles Photography Festival". WWD. Retrieved 10 April 2019.
  64. ^ Spencer, Mimosa; Spencer, Mimosa (7 May 2019). "Kering, Cannes Film Festival Renew Women in Motion Program". WWD. Retrieved 25 August 2019.
  65. ^ "Power Moves | Kering Adds to Board of Directors, Vanity Fair Italia Names New Editor-In-Chief". The Business of Fashion. 8 November 2018. Retrieved 9 November 2018.
  66. ^ Singh, Prachi. "Kering board nominates Ginevra Elkann as Director". Retrieved 9 November 2018.
  67. ^ Prachi Singh (18 December 2018). "Héloïse Temple-Boyer replaces Patricia Barbizet as board director at Kering". Fashionunited.uk. Retrieved 8 January 2019.
  68. ^ Singh, Prachi (27 September 2018). "Kering shares enter Stoxx 50 European Index". Fashion United. Retrieved 16 October 2018.
  69. ^ "Why Kering Is Buying Back Its Shares". The Business of Fashion. 29 October 2018. Retrieved 9 November 2018.

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