|Traded as||Euronext: KER
CAC 40 Component
|Industry||Retail and Fashion design|
|Headquarters||40 rue de Sèvres, Paris, France|
(Chairman and CEO)
|Revenue||€12.385 billion (2016)|
|€1.886 billion (2016)|
|€1.282 billion (2016)|
|Total assets||€24.139 billion (2016)|
|Total equity||€11.964 billion (2016)|
Number of employees
Kering S.A. (French: [kɛːʁiŋ]) is an international luxury group based in Paris, France. It owns various luxury goods brands, including Gucci, Yves Saint Laurent, Balenciaga, Alexander McQueen, Bottega Veneta, Boucheron and Brioni, as well as Puma and Volcom in its Sport & Lifestyle portfolio.
The company was known from 2005 to 2013 as PPR and was known before 2005 as Pinault-Printemps-Redoute. It has been quoted on Euronext Paris since 1988 and has been a constituent of the CAC 40 index since 1995. The company has been headed by François-Henri Pinault since 2005.
- 1 History
- 2 Description
- 3 Commitments
- 4 Governance
- 5 See also
- 6 References
- 7 External links
Building a retail empire with wood
In 1963, with a loan from his family and a bank, François Pinault opened the Établissements Pinault in Brittany (France) and specialized in timber trading. The company grew organically and through successful acquisitions. In 1988, Pinault S.A. was listed on the Paris Stock Exchange, multiplying the group’s financial power.
In 1989, it 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 the group’s identity with its new activities, it was renamed Pinault-Printemps-Redoute (PPR) in 1994.
Offloading retail assets to invest in luxury
In 1999, Pinault-Printemps-Redoute purchased a controlling 42% stake of the Gucci group for $3 billion. Through the Gucci deal, Pinault-Printemps-Redoute also acquired the brand Yves Saint Laurent. It confirmed this new strategy with its following acquisitions, which included the French high-jewelry house Boucheron (2000), the Italian leather goods maker Bottega Veneta, and the fashion house Balenciaga (2001). In 2001, Pinault-Printemps-Redoute also signed strategic partnerships with ex-Givenchy fashion designer Alexander McQueen and with Stella McCartney.
With a new strategy for the group, Pinault-Printemps-Redoute offloaded its assets in the retail sector one after the other: Pinault Bois et Matériaux, upon which the whole group developed and grew, was acquired in 2003 by the British group Wolseley.
In 2003, François Pinault handed over the helm of Artémis, the family holding company that controlled Pinault-Printemps-Redoute and other assets (Château Latour, Christie’s, etc.), to his son François-Henri. In 2004, Pinault-Printemps-Redoute acquired almost all of the remaining shares of the Gucci group to reach a 99.4% ownership of the Italian luxury company. In 2005, François-Henri Pinault chose a hands-on approach to managing Pinault-Printemps-Redoute and decided to take over the position of CEO. The group officially changed its name to PPR.
The divestment of the group’s retail assets continued: Le Printemps (2006), Conforama (2011), CFAO and Fnac (2012), and La Redoute (2013). In the meantime, PPR acquired the Sowind Group (owner of Swiss high-end watchmaker Girard-Perregaux) and the Italian bespoke tailor Brioni (2011), the Italian group Pomellato (Pomellato and Dodo jewelry brands), the Chinese jeweler Qeelin (2012), the fashion designer Christopher Kane, and luxury watch manufacturer Ulysse Nardin (2014).
Kering, a new luxury company
On March 22, 2013, PPR changed its name to Kering in order to fully achieve the group’s shift towards luxury goods. 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.
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. 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. In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga, quickly turning the house into a performing brand on the fashion scene.
Kering is organized into two sections: Luxury and Sport & Lifestyle.
The Luxury portfolio includes brands specialized in the design, manufacture and sale of luxury products, especially in the leather-goods, shoes, ready-to-wear, watches and jewelry sectors. Ninety-four percent of the group’s operating income in 2016 was generated by the following brands:
- Yves Saint Laurent
- Bottega Veneta
- Stella McCartney
- Alexander McQueen
- Christopher Kane
- Tomas Maier
- Ulysse Nardin
The Sport & Lifestyle portfolio includes:
In April 2012, Kering committed to a 4-year plan aiming to significantly reduce its impact on the environment. The group defined a set of quantifiable targets covering both environmental and social issues, and developed the Environmental Profit & Loss account (E P&L) to measure its progress.
Published in 2016, Kering’s sustainability report showed that Kering was able to control some supply/production chains more than others: while it reached 99% on its PVC-free goal, it only reached 15% on its goal to purchase its gold from verified "fairmined gold" providers, and 64% of its goal to purchase its leather from responsible and verified sources. Carbon emissions were reduced by 11%, waste output by 16% and water usage by 19%. Six thousand supplier audits were performed. Kering then announced its new sustainability program, which targets a 40% reduction of its global environmental impact by 2025, a strategy aligned with the UN Sustainable Development Goals.
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 has initiated 47 partnerships with NGOs and supported many social projects oriented towards women’s rights.
Many brands have their own philanthropic projects, which the Kering Foundation supports. Gucci, one of the Group's major brands, launched its project "Chime for Change", an international campaign led by actress Salma Hayek Pinault, then Frida Giannini (former creative director of Gucci) and Beyoncé Knowles, to raise funds for women’s emancipation, focusing on education, health and justice.
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.
Women In Motion Awards
The Women in Motion Awards have been awarded annually by Kering in partnership with the Cannes Film Festival since 2015. Winners include:
- 2015 - Jane Fonda, Megan Ellison
- 2016 - Geena Davis, Susan Sarandon
- 2017 - Isabelle Huppert, Maysaloun Hamoud (Young Talents Award)
Board of Directors
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus - Group Managing Director
- Patricia Barbizet
- Baudouin Prot
- Laurence Boone
- Yseulys Costes
- Sophie L’Hélias
- Daniel Ricardi
- Sapna Sood
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus - Group Managing Director
- Jean-Marc Duplaix - CFO
- Jean-Philippe Bailly - COO
- Carlo Alberto Beretta - Chief Client and Marketing Officier
- Marie-Claire Daveu - Chief Sustainability Officer and Head of institutional affairs
- Valérie Duport - VP Communications and Image
- Béatrice Lazat - VP Human Resources
- Albert Bensoussan - CEO Watches and Jewelry
- Roberto Vedovotto - CEO Kering Eyewear
- Francesca Bellettini - CEO Saint Laurent
- Marco Bizzarri - CEO Gucci
- Bjørn Gulden - CEO Puma
- Claus-Dietrich Lahrs - CEO Bottega Veneta
- "Gucci fades on court ruling". Cnn.com. 27 May 1999. Retrieved 24 July 2017.
- "Gucci Group Agrees to Sell 40% Stake to French Retailer". Latimes.com. 20 March 1999. Retrieved 24 July 2017.
- Sri Ramakrishnan (16 November 1999). "Gucci to Buy Parent Of Yves Saint Laurent". Washingtonpost.com. Retrieved 24 July 2017.
- McNeil, Peter; Riello, Giorgio (19 May 2016). Luxury: A Rich History. Oxford University Press. p. 256. ISBN 9780191640278.
- Joanne Wallen (24 April 2003). "Ooh la la, Wolseley gets heavy in France". Citywire.co.uk. Retrieved 24 July 2017.
- Suzanne Kapner (23 March 2004). "PPR moves to buy last 30% of Gucci Group". Nypost.com. Retrieved 24 July 2017.
- Joshua Levine (15 February 2013). "The Man Behind the Curtain". Nytimes.com. Retrieved 24 July 2017.
- Sara Gay Forden, Jacqueline Simmons (20 June 2006). "As sales fall, PPR works to unload Printemps". Nytimes.com. Retrieved 24 July 2017.
- Christina Passariello (8 November 2011). "PPR Buys Menswear Brand Brioni". Wsj.com. Retrieved 24 December 2013.
- Luisa Zargani, Miles Socha (24 April 2013). "Kering Acquires Pomellato". Wwd.com. Retrieved 24 July 2017.
- "PPR acquires majority stake in Chinese Qeelin". Fashiounited.com. 9 December 2012. Retrieved 24 July 2017.
- Ella Alexander (15 January 2013). "PPR Buys Majority Stake In Christopher Kane". Vogue.co.uk. Retrieved 24 July 2017.
- Elizabeth Doerr (30 July 2014). "Kering (Previously PPR, Gucci Group) Acquires Ulysse Nardin". Forbes.com. Retrieved 24 July 2017.
- "Puma acquires Cobra Golf and announces becoming Cobra-Puma Golf". Worldgolf.com. 10 May 2010. Retrieved 24 July 2017.
- Chris V. Nicholson (2 May 2011). "PPR to Buy Volcom, a Sportswear Maker". Nytimes.com. Retrieved 24 July 2017.
- "PPR becomes Kering". Kering.com. 22 March 2013. Retrieved 24 July 2017.
- Anthony DeMarco (18 June 2013). "It's Official: PPR Becomes Kering; Reportedly In Talks To Acquire Richard Mille". Forbes.com. Retrieved 24 July 2017.
- Harriet Agnew (10 February 2017). "Kering reports strongest revenue growth since 2012". Ft.com. Retrieved 24 July 2017.
- Robert William (26 April 2017). "Gucci's Latest Revival Fueled by Sequins Rather Than Sex". Bloomberg.com. Retrieved 24 July 2017.
- 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.
- Jess Cartner-Morley (2 October 2016). "Demna Gvasalia reinvigorates Balenciaga with strategic disrespect". Theguardian.com. Retrieved 24 July 2017.
- "Recurring operating income breakdown by activity (2016)". Kering.com. Retrieved 24 July 2017.
- Kate Abnett (3 May 2016). "Kering Goes Public with Sustainability Report, Revealing Progress and Pain Points". Businessoffashion.com. Retrieved 24 July 2017.
- Monica Karski (17 September 2015). "Kering still industry leader in Dow Jones Sustainability Indices". Fashionnetwork.com. Retrieved 24 July 2017.
- Elizabeth Paton (25 January 2017). "François-Henri Pinault, Kering Chief, on Why Green Is the New Black". Nytimes.com. Retrieved 24 July 2017.
- Libby MacCarthy (26 January 2017). "Kering to Transform Luxury Industry with Next-Gen Sustainability Strategy". Sustainablebrands.com. Retrieved 24 July 2017.
- Cajsa Lykke Carlson (8 October 2015). "Kering Group co-produces new film "Ice & Sky"". Fashionnetwork.com. Retrieved 24 July 2017.
- "Chime For Change Campaign, Beyoncé Launch Initiative To Help Girls Run The World". huffingtonpost.com. 2013-01-03. Retrieved 2013-01-03.
- Josh Lee (18 November 2016). "Why you should support the White Ribbon campaign". Gq-magazine.co.uk. Retrieved 24 July 2017.
- "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.