Kering underperformed in 2023

With a decline of 2% on a comparable basis (-4% on a reported basis) and a 17% drop in net income, the luxury group headed by François-Henri Pinault hardly shone in 2023. It is counting on the relaunch of Gucci and the development of its new Kering Beauté division to do better in 2024, but with results still impacted by investments.

 

The year 2023 was much less successful for Kering, still in the process of relaunching its star House Gucci, than for Lvmh.

Indeed, the group headed by François-Henri Pinault announced a decline in sales of 4% on a reported basis, “including significant currency and scope effects (-4% and +2% respectively)” and 2% on a comparable basis to 19.6 billion euros in 2023. And in the fourth quarter, things got even tougher, with a decline of 6% on a reported basis and 4% on a comparable basis.

Kering points out, however, that “business is growing in Asia-Pacific and Japan” and that “trends in Western Europe and North America are improving sequentially.”

 

Sales higher and earnings lower than expected

 

Full-year sales were, however, slightly higher than the consensus forecast compiled by FactSet, which had expected an average of 19.48 billion euros…



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Featured Photo: The group’s new headquarters in Rome will be inaugurated in 2023 © Kering

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Sophie Michentef
Sophie Michentef has worked for more than 30 years in the professional press. For fifteen years, she managed the French and international editorial staff of the Journal du Textile. She now puts her press, textile, fashion, and luxury expertise at the service of newspapers, professional organizations, and companies.

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