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Kering

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Kering
FormerlyPinault S.A.
Pinault-Printemps-Redoute
PPR
Company typePublic (Société Anonyme)
Euronext Paris: KER
CAC 40 component
ISINFR0000121485 Edit this on Wikidata
IndustryLuxury
Founded1962; 62 years ago (1962)
FounderFrançois Pinault
Headquarters40 rue de Sèvres, Paris 7e, France
Key people
François-Henri Pinault
(Chairman and CEO)
ProductsLuxury goods
RevenueDecrease €19.57 billion (2023)
Decrease €4.75 billion (2023)
Decrease€3.06 billion (2023)
Total assetsIncrease €41.37 billion (2023)
Total equityIncrease €16.01 billion (2023)
Number of employees
49,000 (2023)
Subsidiaries
Websitekering.com
Footnotes / references
[1]

Kering (French: [kɛːʁiŋ]) is a French multinational holding company specializing in luxury goods, headquartered in Paris. It owns the brands Yves Saint Laurent, Gucci, Balenciaga, Bottega Veneta, Creed and Alexander McQueen.

The timber-trading company Pinault S.A. was founded in 1962, by François Pinault. After the company was quoted on Euronext Paris in 1988, it became the retail conglomerate Pinault-Printemps-Redoute (PPR) in 1994. The luxury group was rebranded Kering in 2013. It has been a constituent of the CAC 40 since 1995. François-Henri Pinault has been president and CEO of Kering since 2005. In 2023, the group's revenue reached €19.6 billion.

History

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Timber (1962-1988)

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Main article: François Pinault

In 1962, François Pinault opened the Établissements Pinault in Brittany (France) specialized in timber trading with a 100,000 francs loan from the bank.[2] His business grew rapidly by acquiring many failing local timber operations and building its own import bridges, turning Pinault S.A. into a leading timber trader in France in the 1980s. By 1988, the group owned 180 companies and 33 factories for an annual revenue of 10 billion francs.[3]

Retail (1988-2013)

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In 1988, Pinault S.A. was listed on the Paris Stock Exchange and started an era of growth in the retail sector through major acquisitions.[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 which acquired Conforama (French furniture retailer) in 1991, Printemps (department stores in France) in 1992, which also owned 54% of La Redoute (French mail-order shopping retailer), and Fnac (French bookstore, multimedia and electronics retailer) in 1994. 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.[4][5][6] Those investments marked the cornerstone of the group's shift towards luxury. Through Gucci, Pinault-Printemps-Redoute acquired Boucheron in 2000,[7] Bottega Veneta in 2001,[8] Balenciaga in 2001,[9] and signed partnerships with Alexander McQueen[10] and Stella McCartney.[11]

In 2003, François-Henri Pinault, son of the founder François Pinault, became general manager of Artémis, the family holding company that controlled Pinault-Printemps-Redoute. In 2005, he was named president and CEO of Pinault-Printemps-Redoute,[12] a year after the group had reached a 99.4% ownership of Gucci.[13] The group continued acquiring luxury brands: Sowind Group (watch company owner of Girard-Perregaux)[14] and Brioni (Italian tailor) in 2011,[15] Pomellato Group (jewelry company owner of Pomellato and Dodo)[16] and Qeelin (jewelry) in 2012,[17] Christopher Kane (British fashion house)[18] and Richard Ginori (porcelain) in 2013,[19] Ulysse Nardin (watches) in 2014.[20] The group also sold its retail assets: Le Printemps in 2006,[21] Conforama in 2011,[22] CFAO in 2012,[23] Fnac in 2012, and La Redoute in 2013.[24] PPR developed a Sport & Lifestyle portfolio with the acquisition of Puma in 2007,[12] Cobra Golf in 2010,[25] and Volcom in 2011,[26] all of which were sold the following decade.[27]

Luxury (since 2013)

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In March 2013, PPR changed its name to Kering.[28] The leather-weaver Bottega Veneta was transformed into a "quiet luxury" icon, hitting the billion-dollar mark in sales in 2012.[29] In 2014, Kering created its own eyewear production arm, Kering Eyewear, growing its revenue to 1.5 billion euros in 2023, and acquired the eyewear brands Lindberg in 2021[30] and Maui Jim in 2022.[31] The traditional Balenciaga house was turned into a disruptive fashion house[32] and Yves Saint Laurent hit the 2-billion dollar sales mark in 2019.[33] However, from 2015 to 2022, the group's revenue was essentially driven by Gucci's year-on-year high performance, hitting the 10-billion dollars sales mark in 2022.[34] The group divested its interests in Stella McCartney in 2018,[35] Christopher Kane in 2019,[36] and its entire watch division (Girard-Perregaux and Ulysse Nardin) in 2022.[37]

In 2023, Kering's annual results declined to 19.6 billion (-4%), mainly caused by the deceleration of Gucci's streak, a transition phase according to the group's executives.[38] That same year, Kering acquired the fragrance company Creed,[39] 30% of the fashion house Valentino,[40] and Kering Beauté was launched to manage in-house the development of beauty products for the group's brands.[41]

Activities

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Kering's headquarters are located in the former Hopital Laennec in the 7th arrondissement of Paris. The parent holding company of Kering is Groupe Artémis. In 2023, Kering made 19.6 billion euros in revenue. The group has 46,000 employees and 1,381 stores.[1]

Kering fully or partially owns the following brands:

Brand Acquisition Year Country
Gucci 1999[4]  Italy
Yves Saint Laurent 1999[5]  France
Boucheron 2000[7]  France
Bottega Veneta 2001[8]  Italy
Balenciaga 2001[9]  Spain
Alexander McQueen 2001[10]  United Kingdom
Brioni 2011[15]  Italy
Qeelin 2012[17]  China
Pomellato 2012[16]  Italy
Dodo 2012[16]  Italy
Ginori 1735

(formerly Richard Ginori)

2013[19]  Italy
Lindberg 2021[30]  Denmark
Maui Jim 2022[31]  United States
Creed 2023[39]  United Kingdom
Valentino (30%) 2023[40]  Italy

Kering also owns Kering Eyewear (luxury eyewear production arm)[42] and Kering Beauté (cosmetics division).[41]

Governance

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Financial data

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Results (in € millions)
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2023
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 13 100.2 19 566
Net results 680 1 058 924 985 965 986 1 048 50 528.9 696 814 1 786 3 714.9 3 211.5 1 972.2 2 983

Commitments

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The Kering Foundation was created in 2008 to combat violence against women. Kering was one of the first companies to endorse the Women's Empowerment Principles of the UN Women.[43] Starting in 2019, the Kering Foundation developed actions to combat violence against children, making it a pillar of its operations in 2023.[44]

In 2015, Kering became an official partner of the Cannes Film Festival and launched the diversity program Women in Motion[45] which was extended to the Rencontres d'Arles photography festival[46] and the Tokyo Film Festival in 2019.[47]

In 2015, the group released the environmental profit and loss account (EP&L).[48] Kering launched the Regenerative Fund for Nature in 2021 to finance the transition to regenerative farming practices[49] and the Climate Fund for Nature in 2022 to finance nature conservation and restoration initiatives.[50]

In May 2024, Kering partenered with the National University of Singapore to create, via the entity's Center for Governance and Sustainability, a tool for measuring the environmental impact of companies in the Asia-Pacific region. This collaboration seeks to establish a benchmark for measuring the impact of the green strategies of major Asia-Pacific companies.[51]

See also

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References

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  1. ^ a b 2023 Annual results, 9 February 2024
  2. ^ a b c Guardian Staff (3 April 1999). "From timber merchant to corporate axeman". The Guardian. ISSN 0261-3077. Retrieved 25 August 2019.
  3. ^ "François Pinault et sa stratégie d'entreprise : toujours se démarquer". mediaclip (in French). 21 May 1988. Retrieved 2 July 2024.
  4. ^ a b "Gucci Group Agrees to Sell 40% Stake to French Retailer". Los Angeles Times. 20 March 1999. Retrieved 24 July 2017.
  5. ^ a b Sri Ramakrishnan (16 November 1999). "Gucci to Buy Parent Of Yves Saint Laurent". Washingtonpost.com. Retrieved 24 July 2017.
  6. ^ "Gucci fades on court ruling". Cnn.com. 27 May 1999. Retrieved 24 July 2017.
  7. ^ a b "GUCCI BUYS AGAIN: DEAL FOR BOUCHERON BOOSTS JEWELRY UNIT". WWD. 24 May 2000. Retrieved 1 May 2024.
  8. ^ a b "GUCCI STRIKES AGAIN: BUYS MAJORITY SHARE OF BOTTEGA VENETA". WWD. 8 February 2001. Retrieved 1 May 2024.
  9. ^ a b Finch, Julia (7 July 2001). "Gucci liked the designer so much it bought Balenciaga". The Guardian. ISSN 0261-3077. Retrieved 1 May 2024.
  10. ^ a b Bellafante, Ginia (5 December 2000). "Gucci secures a deal with Alexander McQueen". The New York Times. ISSN 0362-4331. Retrieved 1 May 2024.
  11. ^ McNeil, Peter; Riello, Giorgio (19 May 2016). Luxury: A Rich History. Oxford University Press. p. 256. ISBN 9780191640278.
  12. ^ a b Joshua Levine (15 February 2013). "The Man Behind the Curtain". The New York Times. Retrieved 24 July 2017.
  13. ^ Suzanne Kapner (23 March 2004). "PPR moves to buy last 30% of Gucci Group". Nypost.com. Retrieved 24 July 2017.
  14. ^ "PPR becomes majority shareholder of Sowind Group". Reuters. 5 July 2011. Retrieved 2 July 2024.
  15. ^ a b Christina Passariello (8 November 2011). "PPR Buys Menswear Brand Brioni". Wsj.com. Retrieved 24 December 2013.
  16. ^ a b c Luisa Zargani, Miles Socha (24 April 2013). "Kering Acquires Pomellato". Wwd.com. Retrieved 24 July 2017.
  17. ^ a b "PPR acquires majority stake in Chinese Qeelin". Fashiounited.com. 9 December 2012. Retrieved 24 July 2017.
  18. ^ Ella Alexander (15 January 2013). "PPR Buys Majority Stake In Christopher Kane". Vogue.co.uk. Retrieved 24 July 2017.
  19. ^ a b "Gucci offers to buy Richard Ginori porcelain maker for 13 million euros". Reuters. 5 April 2013. Retrieved 1 May 2024.
  20. ^ Elizabeth Doerr (30 July 2014). "Kering (Previously PPR, Gucci Group) Acquires Ulysse Nardin". Forbes.com. Retrieved 24 July 2017.
  21. ^ Sara Gay Forden, Jacqueline Simmons (20 June 2006). "As sales fall, PPR works to unload Printemps". The New York Times. Retrieved 24 July 2017.
  22. ^ "PPR Looks to Sell Conforama". The Wall Street Journal. Archived from the original on 11 June 2022.
  23. ^ "Toyota Tsusho to buy PPR stake in CFAO". Reuters. Archived from the original on 11 June 2022.
  24. ^ PPR says in talks to sell La Redoute by year-end
  25. ^ "Puma acquires Cobra Golf and announces becoming Cobra-Puma Golf". Worldgolf.com. 10 May 2010. Retrieved 24 July 2017.
  26. ^ Chris V. Nicholson (2 May 2011). "PPR to Buy Volcom, a Sportswear Maker". The New York Times. Retrieved 24 July 2017.
  27. ^ Beth Wright (16 May 2018). "Kering officially spins off Puma". Just-style.com. Archived from the original on 13 November 2019. Retrieved 19 June 2018.
  28. ^ Jolly, David (22 March 2013). "PPR to Show Breton Roots With Rebranding as Kering". The New York Times. Retrieved 22 November 2023.
  29. ^ Zargani, Luisa (22 February 2013). "Sales, Profits Up at Bottega Veneta in 2012". WWD. Retrieved 2 July 2024.
  30. ^ a b Mira, Nicola (9 July 2021). "Kering Eyewear buys 100% stake in Danish brand Lindberg". FashionNetwork.com. Retrieved 30 September 2021.
  31. ^ a b "Kering Eyewear acquires Hawaiian eyewear brand Maui Jim". The Moodie Davitt Report. 14 March 2022. Retrieved 14 March 2022.
  32. ^ Jess Cartner-Morley (2 October 2016). "Demna Gvasalia reinvigorates Balenciaga with strategic disrespect". Theguardian.com. Retrieved 24 July 2017.
  33. ^ Guyot, Olivier (17 February 2020). "Saint Laurent franchit la barre des 2 milliards d'euros". FashionNetwork.com (in French). Retrieved 2 July 2024.
  34. ^ Garnier, Juliette (22 September 2023). "After undergoing intense reinvention, Gucci searches hard for a second coming". Le Monde.fr. Retrieved 2 July 2024.
  35. ^ Ben Stevens (29 March 2018). "Kering offloads entire stake in Stella McCartney". Retailgazette.co.uk. Retrieved 19 June 2018.
  36. ^ Agnew, Harriet (21 June 2018). "Christopher Kane in talks to buy back brand from Kering". www.ft.com. Retrieved 2 July 2024.
  37. ^ Sudip Kar-Gupta, Mimosa Spencer and Silke Koltrowitz, Luxury goods group Kering to sell watches division, Reuters.com, 24 January 2022
  38. ^ Danziger, Pamela N. "Trouble In The House Of Gucci: Kering Struggles To Revive The Brand's Sparkle". Forbes. Retrieved 1 May 2024.
  39. ^ a b Massoudi, Arash; Klasa, Adrienne; Abboud, Leila (9 July 2023). "Kering paid €3.5bn for fragrance company Creed". www.ft.com. Retrieved 4 September 2024.
  40. ^ a b "Kering acquisisce il 30% di Valentino per 1,7 miliardi di euro". ilsole24ore.com. ilsole24ore.com. 28 July 2023. Retrieved 28 July 2023.
  41. ^ a b Guilbault, Laure (3 February 2023). "Kering enters beauty with new entity led by former Estée Lauder exec". Vogue Business. Retrieved 1 May 2024.
  42. ^ Gilles, Florent (18 November 2013). "Former Safilo CEO Roberto Vedovotto joins Kering". FashionNetwork.com. Retrieved 25 October 2022.
  43. ^ Wynne, Alex (3 March 2016). "Kering Partners With UN Women". WWD. Retrieved 1 May 2024.
  44. ^ Diderich, Joelle (20 September 2023). "Kering Foundation Expands Remit to Combat Violence Against Children". WWD. Retrieved 1 May 2024.
  45. ^ Keslassy, Elsa (30 March 2015). "Cannes Film Fest, Kering Launch Women in Motion". Variety. Retrieved 21 May 2024.
  46. ^ Diderich, Joelle (13 March 2019). "Kering Partners With Rencontres d'Arles Photography Festival". WWD. Retrieved 2 July 2024.
  47. ^ Frater, Patrick (23 October 2019). "Kering and Tokyo Festival Bring 'Women in Motion' Talk Series to Japan". Variety. Retrieved 8 June 2024.
  48. ^ Abnett, Kate (3 May 2016). "Kering Goes Public with Sustainability Report, Revealing Progress and Pain Points". Business of Fashion. Retrieved 23 July 2024.
  49. ^ "Kering launches a new regenerative fund to support leather, cotton, wool and cashmere farmers". World Business Council for Sustainable Development (WBCSD). Retrieved 1 May 2024.
  50. ^ "Kering, L'Occitane Group Launch €300 Million Nature Fund". The Business of Fashion. 12 December 2022. Retrieved 1 May 2024.
  51. ^ "Kering s'engage dans la transition écologique en Asie-Pacifique". Journal du Luxe. Retrieved 15 May 2024.
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