“Kering realized excellent performances in 2021, further consolidating its prominent position in the Luxury of the future. Thanks to their ability to blend authenticity with bold creativity, all our Houses achieved sharp sales rebound, way beyond their 2019 levels, while reinforcing the exclusivity of their distribution and further enhancing their brand equity. We expanded our team of talented people around the world, and I am sincerely grateful for the remarkable accomplishments of all our colleagues. We are working assiduously to meet our ambitious sustainability commitments. All our Houses are stronger than ever before, and we are confident we will extend last year’s momentum in 2022 and in coming years”, commented François-Henri Pinault, Chairman and Chief Executive Officer of Kering.

The group reported that all Houses had “outstanding performances”, generating revenue of 17.02 billion US dollars, up by 34% as reported and by 35% on a comparable basis.

Over 2020, revenue from the retail network (including e-commerce) grew by 40%, as compared to 2020, supported by a sharp rebound in all regions, and by 18%, as compared to 2019. Sales growth accelerated in the fourth quarter of 2021, rising by 39% and by 34%, on a comparable basis to 2020 and 2019. Online sales “continued to grow at an exceptional pace”, having increased by 55%. The online channel’s penetration rate doubled in two years, and it now accounts for 15% of total sales in the retail network.

Wholesale revenue in 2020 rose by 17%, on a comparable basis to the prior year, and was down by 3%, as compared to 2019, in line with the Group’s increasingly exclusive approach to distribution.

Recurring operating income rose by 60% to 5.01 billion euros, as compared to the prior year, and recurring operating margin corresponded to 28.4%.

Gucci’s performance

In 2021, the House’s revenue amounted to 9.73 billion euros, which reflects an increase of 31%, as compared to 2020, and exceeds the 2019 level of 9.63 billion euros. Sales generated in the retail network grew by 37%, on a comparable basis to 2020, and by 10%, as compared to  2019. Wholesale revenue fell by 10% year-on-year, and by 39%, as compared to 2019, due to “the overhaul of Gucci’s distribution”.

In the fourth quarter of 2021, Gucci’s revenue growth accelerated by 32% year-on-year and by 18%, as compared to the same period of 2019, thanks “to the success of its iconic lines, along with an intense schedule of events and new product launches”. Sales from directly operated stores rose by 35% and by 25%, on a comparable basis to 2020 and 2019, respectively.

Other Fashion Houses

Yves Saint Laurent posted revenue of 2.52 billion euros in 2021, which indicates an increase of 45% as reported and by 46%, on a comparable basis to 2020. Revenue growth accelerated in the fourth quarter by 47%, as compared to the same period of the prior year.

Bottega Veneta’s revenue in 2021 exceeded 1.5 billion euros, reflecting growth of 24% as reported and of 25%, on a comparable basis to 2020, and by 32%, on a comparable basis to 2019. In the fourth quarter of 2021, the House's revenue rose by 14% year-on-year, and  by 31%, as compared to the same period of 2019.

Kering’s Other Houses generated revenue of 3.26 million euros, which reflects an additional revenue of  around 1 billion US dollars, as compared to 2020. The group noted that “Balenciaga and Alexander McQueen delivered excellent performances, and all Jewelry Houses had an exceptional year”.

Image Credits: harpersbazaar.com.sg