|Traded as||Euronext: KER|
(Chairman and CEO)
|Revenue||€10.038 billion (2014)|
|€1.664 billion (2014)|
|Profit||€1.177 billion (2012)|
|Total assets||€24.69 billion (2010)|
|Total equity||€17.764 billion (2012)|
Number of employees
Kering (previously PPR) is the French luxury goods holding company owner of Alexander McQueen, Balenciaga, Brioni, Gucci, Puma, Volcom, Saint Laurent Paris, and other luxury, sport & lifestyle brands distributed in 120 countries. The company was founded in 1963 by businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index.
- 1 History
- 2 Organization (January 2012)
- 3 Financial and market data
- 4 Commitments
- 5 See also
- 6 References
- 7 External links
Wood trade negotiation, the group’s origins
On 2 June 1962, François Pinault officially opened the Etablissements Pinault, specialized in wood trade negotiation, and then in construction material. First a company from Brittany, it grew organically and thanks to successive acquisitions, it reached national recognition. In 1987, the Pinault group took control of the paper-maker La Chapelle d’Arblay, which faced economic difficulties. It was then sold to Finnish group Kymmene. Pinault SA was listed in the Second Marché of Bourse de Paris in 1988, and allowed institutions such as the Crédit Lyonnais or the AGF to invest in its company.
A diversification towards retail and its shift towards apparel & accessories
In March 1990, François Pinault was elected president of CFAO, which specialized in electrical material distribution and negotiation in Africa.
In April 1991, Pinault SA entered the retail distribution market, with the takeover of Conforama.
In 1992, the Group sold the Compagnie Industrielle d’Ameublement (kitchen furniture), of Ordo (office furniture) and Isoroy (wood panel makers). During the same year, The Pinault-Printemps Group was born out of the Au printemps SA takeover, which owned 54% of La Redoute and Finaref. In 1993, the Armand Thierry company, bought by Le Printemps, was sold. Disco (Food-industry retailer) was also sold.
In 1994, La Redoute was absorbed by Pinault-Printemps, and renamed Pinault-Printemps-Redoute. In July, the group took control of French retailer Fnac.
In 1995, the Group launched its first Website: www.laredoute.fr.
In 1996, CFAO bought SCOA, the main pharmaceutical distributor in West Africa. The same year, PPR created Orcanta, a lingerie distributor.
Over the following years, PPR continued to develop its activities in retail and home shopping sectors. In 1997, Redcats (PPR’s home shopping retailer, built around La Redoute) took control of Ellos, Scandinavia’s home shopping leader. The same year, Fnac created Fnac Junior, a concept-store which targets young people under 12.
In 1998, PPR continued its acquisitions in the home shopping sector: Redcats acquired 49.9% of Brylane (home shopping company in the United States). PPR also took control of Guilbert (specialized in office furniture retailing).
In 1999, Fnac launched its Website: www.fnac.com
In 2002, PPR sold Facet, the subsidiary company of Conforama’s private card, to BNP Paribas, and Finaref, its financial services subsidiary, to Crédit Agricole. The same year, Guilbert’s home shopping activities were sold to Staples, while the following year its office-furniture negotiation activities were sold to Office Depot.
In 2003, PPR sold its Pinault Bois et Matériaux company to the British group Wolseley. After symbolizing the very first step of the Group in the wood trade sector, and becoming a famous French retailer in wood material construction, import and transformation, Pinault Bois was sold for 565 million euros.
In 2004, PPR sold the electrical material manufacturer Rexel. After a public bid, Pinault-Printemps-Redoute increased its shares to 99.4% of Gucci Group’s capital.
The 18 May 2005, Pinault-Printemps-Redoute changed its name to become simply PPR.
In 2006, PPR made a certain number of disposals, for example the sale of 51% of France Printemps (with brands such as Made in Sport and Citadium) to RREEF and the Borletti Group, as well as the lingerie company Orcanta, bought by Chantelle. Meanwhile, Redcats (which comprises La Redoute and many other home shopping companies) bought The Sportman’s Guide Inc.
With the acquisition of a control participation in Puma in 2007 (of 27.1%) and after acquiring a 62.1% share of Puma, the Group consolidated its position in the Sport & Lifestyle sector. In March 2007, PPR sold Kadéos to the Accor group.
In 2008, PPR sold YSL beauty to L’Oréal for 1.15 billion euros.
In 2009, PPR floated its subsidiary CFAO and gave up control (58%).
Progressive repositioning on Luxury and ‘Sport & Lifestyle’
1999 is the year when PPR first invested in the luxury sector, with a 42% acquisition of Gucci Group NV. More acquisitions followed to build a stronger luxury identity for the Group: Yves Saint Laurent (now Saint Laurent Paris), YSL Beauty and Sergio Rossi. Then in 2000 the jeweller Boucheron, and the watchmaker Bedat & Cie. At the same time, PPR launched Citadium, a new sports boutique, and bought Surcouf.
In 2001, more luxury brand acquisitions followed: Gucci Group bought Bottega Veneta and Balenciaga, and signed partnership deals with Stella McCartney and Alexander McQueen. Between 2001 and 2004, PPR reinforced its capital participation in Gucci Group.
Bédat & Co - on February 25, 2009 Gucci announced a definitive agreement for the sale of Bédat & Co to Luxury Concepts Watches & Jewellery Sdn Bhd, the Malaysia-based brand management company, in partnership with Viviane Fankhauser, then acting CEO of the firm.
In January 2013, PPR and Christopher Kane signed a partnership. PPR acquired 51% of the company’s shares.
In 2013, Kering spun off Fnac as an independent company.
In September 2013, Kering announced its minority stake in the brand of the promising New-Yorker designer Joseph Altuzarra.
PPR, through its Puma subsidiary, bought leading golf equipment manufacturer Cobra in 2010
On 3 May 2011, the Group launched a friendly bid for Volcom, a company specialized in action sports. This acquisition reinforces PPR’s new positioning. As François-Henri Pinault said: “PPR’s Sport & Lifestyle Group is well-positioned to develop in the promising segment of action sport, thanks to Volcom’s outstanding brand with strong identity and unique heritage,”.
Renaming to Kering
On 22 March 2013, FHP suggested the name Kering to highlight the company's focus on its luxury and sport/lifestyle divisions; it is pronounced the same as "caring", but also plays with the origins of the business in the Brittany region of France. In Breton language, ker means ‘home’ or ‘place to live’. The new logo takes an owl as its emblem, an animal which carries a deep significance.
“Kering is a name with meaning, a name that expresses both our purpose and our corporate vision. Strengthened by this new identity, we shall continue to serve our brands to liberate their potential for growth”, said CEO François-Henri Pinault.
With the Kering Academy and HEC Business School in Paris, Tsinghua University in China offers an 18- month executive program focused on Kering "managers identified as high-potential talents at Kering and its brands operating in China."
Organization (January 2012)
Kering is made up of 2 divisions: Luxury and Sports & Lifestyle. In 2014, the brands of the Group are the following:
- The Luxury division comprising brands which design, make and sell luxury products, especially in the leather-good, shoe, ready-to-wear, watches and jewellery sectors. The brands are:
- Gucci (100% share)
- Saint Laurent Paris (100% share)
- Sergio Rossi (100%)
- Boucheron (100% share)
- Bottega Veneta (100% share)
- Balenciaga (100% share)
- Stella McCartney (50% share)
- Alexander McQueen (51% share)
- Brioni (100% share)
- Sowind Group (51% share) with Girard-Perregaux and JeanRichard
- Pomellato Group with Pomellato and Dodo
- Christopher Kane (51% share) and Tomas Maier
- Ulysse Nardin (100% share).
- The ‘Sport & Lifestyle’ division comprises:
Board of Directors
- François Pinault - Honorary Chairman
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus- Deputy CEO, CFO
- Patricia Barbizet -Vice-Chair of the Board of Directors
- Baudouin Prot- Director
- Philippe Lagayette - Director
- Caroline Puel – Director
The Independent Directors are:
- Aditya Mittal
- Luca Cordero di Montezemolo
- Jean-Philippe Thierry
- Jean-Pierre Denis
- Laurence Boone
- Yseulys Costes
- François-Henri Pinault – Chairman and CEO
- Jean-François Palus – Group Managing Director
- Jean-Marc Duplaix – CFO
- Alexis Babeau – Managing Director, Kering Luxury division
- Belén Essioux Trujillo – Senior Vice-President Human Resources, Kering
- Marco Bizzarri – President and Chief Executive Officer of Gucci
- Bjørn Gulden – Chief Executive Officer Puma SE
- Louise Beveridge – Head of Corporate Communication
- Marie-Claire Daveu – Chief Sustainability Officer and Head of institutional affairs
Financial and market data
|Year||2006||2007 ||2008 ||2009 ||2010 ||2011||2012||2013|
|Sales||17 931||17 761||20 201||16 525||11 008||12 227||9 736||9 748|
|EBITDA||1 540||2 096||2 140||1 790||1 649||1 911||2 067||1 750|
|Net result, share of the group||680||1 058||924||985||965||986||1 048||50|
|Net debt||3 461||6 121||5 510||4 367||4 000||3 395||2 491||3 443|
Sales which affected the Group with the associated key dates:
- 2006 Sale of Le Printemps
- 2007 Acquisition of Puma
- 2008 Selling of YSL Beauté
- 2009 Sale of CFAO
- 2010 Sale of Conforama
- 2012 Launch of the demerger and flotation of FNAC and the closing process of Redcats' affiliates
- 2013 La Redoute disposal
Kering complies with the MSI 20000 financial standards.
- 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%
|Number of shares (in millions)||128||128.4||126.5||126.8||127||126.2|
|Market capitalizations (in millions of Euros)||14089||5897||10 661||15 093||14 034||17 764|
|Number of daily transactions||692 022||1 116 420||701 105||453 415||385 265||317 960|
Sustainability has been at the heart of Kering’s strategy and the Group’s actions for over a decade. In April 2012, François-Henri Pinault publicly announced a set of quantifiable targets covering both environmental and social aspects, for the Group to achieve by 2016. Additionally, Kering has developed an innovative tool called the Environmental Profit & Loss account (E P&L). Pioneered by PUMA, Kering is now rolling out this tool across the entire Group, with a Group E P&L to be published in 2016. Since September 2012, the sustainability engagements of Kering are under the direction of Marie-Claire Daveu. Kering sustainability department is composed of 15 experts, and with an annual budget of 10 million of euros is indexed on the evolution of the stock dividend of Kering.
"Sustainable business is smart business" is the principle that CEO and Chairman François-Henri Pinault uses to illustrate the Group’s sustainability engagements.
In 2009, and PPR supported Home, a movie by Yann Arthus-Bertrand and co-produced by Luc Besson. To celebrate the movie’s official launch (on 5 June 2009), free screenings were held in over 100 countries: on television (France 2 on the night of its launch at 8:35pm in France), on DVD and also in several cities around the globe, including the Champ de Mars in Paris during open air projections. Home was seen by over 400 million people around the world 
The Kering Foundation is part of the Kering Sustainability Department.
The Foundation is committed to defend 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 accompanied social entrepreneurs for the benefit of more than 140,000 women. In coherence with the Group’s new orientation, the Foundation focuses on three geographic areas: Western Europe, Asia and the Americas.
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, Frida Giannini, creative director of Gucci and Beyoncé Knowles, which raises funds for women’s emancipation focusing on education, health and justice.
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- Alexander, Ella (15 January 2013). "PPR Buys Majority Stake In Christopher Kane". Vogue.
- Fnac Falls in Paris Trading Debut After Spinoff From Kering
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- Wahba, Phil (10 March 2010). "Fortune Brands selling Cobra golf line to Puma". Reuters.
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- "Copenhagen fashion summit: seven things we learned". The Guardian.
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- "FACT SHEET - Informations about the movie - Home - Un film de Yann Arthus-Bertrand". Homethemovie.org. Retrieved 2014-01-11.
- "Chime For Change Campaign, Beyoncé Launch Initiative To Help Girls Run The World". huffingtonpost.com. 2013-01-03. Retrieved 2013-01-03.