Kering

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Kering
FormerlyPinault S.A.
Pinault-Printemps-Redoute
PPR
Company typePublic (Société Anonyme)
Euronext ParisKER
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
Revenue€19.6 billion (2023)
€4.7 billion (2023)
€3.0 billion (2023)
Total assets€41.367 billion (2023)
Total equity€41.367 billion (2023)
Number of employees
49,000 (2023)
Subsidiaries
Websitekering.com
Footnotes / references
[1]

Kering (French: [kɛːʁiŋ]) is a French-based multinational corporation specializing in luxury goods. It owns the brands Gucci, Balenciaga, Bottega Veneta, Yves Saint Laurent, 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, and the luxury group Kering in 2013. The group 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[edit]

Retail[edit]

In 1962, François Pinault opened the Établissements Pinault in Brittany (France) specialized in timber trading. The company became Pinault S.A.. 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 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. 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] After Gucci, Pinault-Printemps-Redoute acquired Boucheron (2000), Bottega Veneta (2001), Balenciaga (2001), and signed partnerships with Alexander McQueen and Stella McCartney.[6] In 2004, Pinault-Printemps-Redoute reached a 99.4% ownership of Gucci.[7]

Luxury[edit]

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 Serge Weinberg.[8] The group officially changed its name to PPR.[9] and continued acquiring 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 have since then been divested and Kering only holds a minority share in Puma.

In March 2013, PPR changed its name to Kering.[21]

In December 2014, Alessandro Michele, a 12-year accessories designer at Gucci, was named PPR's creative director. In 2015, Kering named a new creative director, Anthony Vaccarello, to renew the brand's props.[22] In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga.[23] Kering appointed Daniel Lee as creative designer of Bottega Veneta in June 2018.[24]

In 2014, Kering hired Roberto Vedovotto to launch its own eyewear manufacturing division, Kering Eyewear, and pilot its development.[25] In March 2017, Richemont partnered with Kering Eyewear to produce Cartier, Alaïa, and Montblanc eyewear.[26] In September 2019, Kering Eyewear opened a 15,000 square-metre logistics centre near Padua, Italy, with an annual output capacity of five million eyewear units.[27] In March 2022, it was announced Kering Eyewear had acquired the Hawaiian eyewear brand Maui Jim.[28] In March 2018, Kering agreed to sell its shares of Stella McCartney back to its eponymous owner.[29] Kering spun off the brand Puma in 2018[30] and sold Volcom the following year. In 2021, Kering led a $216-million investment round in the luxury resale website Vestiaire Collective[31] and acquired 100% stake in the Danish luxury eyewear manufacturer Lindberg.[32] In January 2022, the group announced its intention to sell its watches division, namely the brands Girard-Perregaux and Ulysse Nardin.[33]

In October 2023, Kering announced that third quarter revenue was down 13%.[34] Pinault blamed this decline on the turnover of leadership in both business and creative aspects at multiple brands, as well as challenging macroeconomic conditions decreasing 'aspirational' consumer spending. [35]

Activities[edit]

Description[edit]

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] On 24 January 2022 Kering announced the sale of its entire stake of GIRARD-PERREGAUX and ULYSSE NARDIN to their current management [1] [2].[citation needed]

Brands[edit]

Brand Acquisition Year Country
Gucci 1999 Italy
Yves Saint Laurent 1999 France
Boucheron 2000 France
Bottega Veneta 2001 Italy
Balenciaga 2001 Spain
Alexander McQueen 2001 United Kingdom
Puma 2007 Germany
Brioni 2011 Italy
Girard-Perregaux (Former) 2011 Switzerland
JeanRichard 2011 Switzerland
Qeelin 2012 China
Pomellato 2012 Italy
Dodo 2012 Italy
Ulysse Nardin (Former) 2014 Switzerland
Lindberg 2021[36] Denmark
Maui Jim 2022 United States
Creed 2023[37] United Kingdom / France
Valentino (30%)[38] 2023 Italy

Financial data[edit]

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
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 4 574.2
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
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 2019
Number of shares (in millions) 128 128.4 126.5 126.8 127 126.2 126.2 126.3 126.3 126.3
Market capitalizations (in millions of euros) 14089 5897 10 661 15 093 14 034 17 764 26,935 49 628 63,203 73,899
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 Euronext Paris
  • Member of the CAC 40 index since 9 February 1995
  • Nominal value = euro
  • Main shareholders: Artémis 40.8%

From 2016 to 2021, Kering's share price has increased by 352%.[39] In September 2018, Kering joined the STOXX Europe 50 index.[40] In November 2018, the group announced the share repurchase of 1% of its share capital.[41] In 2019, Kering paid a settlement of 1.25 billion euros ($1.4 billion) to the Italian tax authorities.[42][43] In 2021, the group repurchased 650,000 of its shares to cancel half of them and allocate the other half to its employees.[44]

Kering Foundation[edit]

The Kering Foundation (previously known as PPR Corporate Foundation for Women's Dignity and Rights) is a foundation created and financed by Kering since 2009. The Board of Directors is under the chairmanship of François-Henri Pinault and is made up of 16 members, meeting twice a year.

Social entrepreneurs sponsorship[edit]

Each year, three social entrepreneurs are selected for the economic viability and the social added value of their projects in favor of women, their families and communities. Each selected project proposer is awarded 15 000 euros, and also receives personal and business sponsoring as well as guidance from a Kering staff member.

  • 2010
    • Sakina M’Sa, founder of the Trevo atelier in Paris
    • Maria-Teresa Leal, founder of the COOPA-ROCA, a women's cooperative in a Rio's favela in Brazil
    • Anne Roos-Weil, co-founder of the Pesinet association, fighting against infant mortality in Mali.
  • 2012[45]
    • Sophia Klumpp and Paul Grinvalds, for their social enterprise AFRIPads, encouraging the educational and vocational integration of girls in Uganda through offering washable sanitary pads. This project is sponsored by a Human Resources manager of Bottega Veneta, on communications and human resources strategies.
    • Delphine Kohler, for her organisation Filles du Facteur, supporting the empowerment of Burkinabian women through the production of crocheted accessories made from recycled plastic bags. This project will benefit from the guidance of a manager of Kering Strategy, on brand positioning and distribution strategy.
    • Miriam Espinoza and Patricia Marihuen, for the association Relmu Witral, preserving the traditional skills of the Mapuche women weavers in Chile. This project is supported by the Retail manager of Volcom, who will provide help and guidance with the redefinition of the product offer and marketing strategy.
  • 2018[46]
    • Beijing Yuanzhong Gender Development Center from China.
    • Callisto, from United States.
    • Chayn, from the United Kingdom.
    • Colori Vivi, from Italy.
    • du Pain & des Roses, from France.
    • GENDES, A.C. from Mexico.
    • Rebuild, Unite and Nurture, from China.

Awareness raising programs[edit]

The foundation supports initiatives fostering public information and awareness about violence against women and women's empowerment (education, training, professional integration, Income Generating Activities, etc.) for both Kering employees and the lay public. For example, the foundation has supported the movie, Desert Flower, for its release in 2010 in France:[47] the movie is based on the true story of Waris Dirie, who was born in the Somali desert and who suffered excision before becoming an international top model.

Other projects[edit]

In 2012 the three winners are Alia Ruby Blade, Stargazing and The Supreme Price.[48]

See also[edit]

References[edit]

  1. ^ a b 2023 Annual results, 9 February 2024
  2. ^ a b Guardian Staff (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". Los Angeles Times. 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". The New York Times. 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". The New York Times. Retrieved 24 July 2017.
  16. ^ "PPR Looks to Sell Conforama". The Wall Street Journal. Archived from the original on 11 June 2022.
  17. ^ "Toyota Tsusho to buy PPR stake in CFAO". Reuters. Archived from the original on 11 June 2022.
  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". The New York Times. Retrieved 24 July 2017.
  21. ^ Jolly, David (22 March 2013). "PPR to Show Breton Roots With Rebranding as Kering". The New York Times. Retrieved 22 November 2023.
  22. ^ 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.
  23. ^ Jess Cartner-Morley (2 October 2016). "Demna Gvasalia reinvigorates Balenciaga with strategic disrespect". Theguardian.com. Retrieved 24 July 2017.
  24. ^ Radhika Seth, Daniel Lee Appointed Creative Director Of Bottega Veneta, Vogue, 15 June 2018
  25. ^ Gilles, Florent (18 November 2013). "Former Safilo CEO Roberto Vedovotto joins Kering". FashionNetwork.com. Retrieved 25 October 2022.
  26. ^ Deeny, Godfrey. "Kering inks eyewear partnership with Cartier". FashionNetwork.com. Retrieved 7 April 2019.
  27. ^ Dominique Muret, Kering Eyewear creates €500 million business in five years, Fashion Network, 7 October 2019
  28. ^ "Kering Eyewear acquires Hawaiian eyewear brand Maui Jim". The Moodie Davitt Report. 14 March 2022. Retrieved 14 March 2022.
  29. ^ Ben Stevens (29 March 2018). "Kering offloads entire stake in Stella McCartney". Retailgazette.co.uk. Retrieved 19 June 2018.
  30. ^ 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.
  31. ^ "Kering increases investment in resale, while LVMH steers clear". Glossy. 2 March 2021. Retrieved 21 March 2021.
  32. ^ Mira, Nicola (9 July 2021). "Kering Eyewear buys 100% stake in Danish brand Lindberg". FashionNetwork.com. Retrieved 30 September 2021.
  33. ^ Sudip Kar-Gupta, Mimosa Spencer and Silke Koltrowitz, Luxury goods group Kering to sell watches division, Reuters.com, 24 January 2022
  34. ^ Latham, Tori (26 October 2023). "Sales at Gucci Fell 7% in the Third Quarter of the Year". Robb Report. Retrieved 26 October 2023.
  35. ^ "Luxury shoppers are buying less Balenciaga and Gucci, in latest signs of an end to the 'roaring 20s'". Fortune. Retrieved 26 October 2023.
  36. ^ Disko. "Kering Eyewear acquires the Danish luxury eyewear brand Lindberg". www.kering.com. Retrieved 3 July 2023.
  37. ^ Bossi, Andrea (26 June 2023). "Kering Makes First Major Beauty Acquisition". Fashionista. Retrieved 22 November 2023.
  38. ^ "Kering acquisisce il 30% di Valentino per 1,7 miliardi di euro". ilsole24ore.com. ilsole24ore.com. 28 July 2023. Retrieved 28 July 2023.
  39. ^ "Investors in Kering (EPA:KER) have made a fantastic return of 427% over the past five years". Simplywall.st. 15 August 2021. Retrieved 14 November 2021.
  40. ^ Singh, Prachi (27 September 2018). "Kering shares enter Stoxx 50 European Index". Fashion United. Retrieved 16 October 2018.
  41. ^ "Why Kering Is Buying Back Its Shares". The Business of Fashion. 29 October 2018. Retrieved 9 November 2018.
  42. ^ "Gucci Owner Investigated by French Authorities Over Taxes (1)". www.bloomberglaw.com. 16 December 2020. Retrieved 17 December 2020.
  43. ^ Emilio Parodi, Sarah White, Gucci owner Kering agrees record Italian tax settlement, Reuters, 9 May 2019
  44. ^ "Interim Dividend for Financial Year 2021". GlobeNewswire. 9 December 2021. Retrieved 11 December 2021.
  45. ^ "Kering Corporate Foundation : Social Entrepreneurs Awards". Fondationppr.org. 9 June 2010. Archived from the original on 2 April 2012. Retrieved 7 September 2013.
  46. ^ "Kering Foundation Awards". Kering Foundation. 19 June 2018. Retrieved 16 July 2018.
  47. ^ "PPR Foundation for "women's dignity and rights" board meeting in Paris". Desert Flower Foundation. 16 November 2011. Archived from the original on 18 November 2011. Retrieved 7 September 2013.
  48. ^ "Tribeca Film Institute". Tribeca Film Institute. 11 September 2001. Retrieved 7 September 2013.

External links[edit]