To be continued now… Kering – 11/24/2022 at 08:16

To be continued now… Kering – 11/24/2022 at 08:16

(AOF) – Gucci, Kering’s flagship brand, has announced the departure of its Creative Director Alessandro Michele. “At the head of the creation of the Chamber since January 21, 2015, Alessandro Michele has contributed greatly to making Gucci what it is today by giving it his revolutionary creativity while remaining faithful to its well-known codes” says the explanation of the luxury group. Gucci’s design studio will continue to provide creative responsibility for the House until a new organization is announced.

The departure of Alessandro Michele was announced on Wednesday by the media specialist in fashion Women’s Wear Daily. Gucci also generates most of the Kering group’s revenues.

Last year, the Florentine brand generated a current operating profit of 3.7 billion euros for just over 5 billion euros for the group as a whole.


Main points

– Luxury group born in 1963, owner of the brands Bottega Veneta, Gucci and Yves-Saint-Laurent;

– The turnover of €17.6 billion achieved 44% in Asia-Pacific, 26% in North America and 23% in Europe%;

– Luxury “pure player” business model, based on growth beyond the markets, on the creative autonomy of the Houses, the integration of support functions and cross-functional expertise and the digital transformation of the service of distribution and clients;

– Capital controlled at 41.74% (58.44% of voting rights) of the Artemis holding company of the founding family, François-Henri Pinault as Chairman and Chief Executive Officer of the 13-member Board of Directors and Jean-François Palus Director deputy general ;

– Healthy balance sheet, with net debt of €942m at the end of June compared to €13.7bn in shareholders’ equity and operating cash flow of more than €2bn.


– “Empowering imagination” growth strategy aimed at increasing the quality of products and the foundation of brands and controlling distribution, through e-commerce and a continuous network of stores, with a focus on three activities:

– YSL: doubling turnover and operating margin by +33% by 2030,

– Gucci: revenues of €35 billion and operating margin of +41%,

– Eyewear: revenues of €2bn, vs €706m in 2021 and operating margin of +15%;

– Change strategy in 3 pillars:

– investment in companies with innovative business models, MIL laboratories for sustainable alternatives to jewelry and textiles, use of blockchain in counterfeiting, etc.;

– stability of logistics infrastructures that serve the customer experience: Luce application on product availability, virtual offer based on data, internalization of sites, etc.,

– growth in e-commerce (13% of sales);

– 2025 “Care for the planet” environmental strategy, reported in an environmental income statement:

– reduce the group’s CO2 emissions by 50%,

– work on the environmental impacts of the supply chain (CO2 emissions, water consumption, air and water pollution, waste production and land use),

– create a “Sustainable Development Index of suppliers” and raise the traceability of animal welfare and the use of chemical products,

– promote “sustainable design”,

– create a Materials Innovation Lab (MIL) dedicated to Watches and Jewelry after textiles and textiles,

– complete compensation of CO2 emissions) for biodiversity;

– Diversification in eyewear with the purchase of American Maui Jim.


– Strong reliance on Gucci, the first contributor to revenues and most profitable brand;

– Acceleration of growth and profitability of YSL and Bottega Venetta and recovery of Gucci sales, which were impaired in the 3rd quarter due to sluggishness in China and the United States;

– After a 23% increase in revenues at the end of September, anticipation of further growth in sales and turnover in 2022;

– Continuation of share buybacks until the end of the year.

big concerns

According to the Federation of specialized trade, Procos, the activity from January to May is significantly decreasing compared to the same period in 2019, at – 8.8%. Store traffic in May 2022 remained lower than in May 2019, but the decrease was limited to 6.5%, better than in April (-19.6% compared to April 2019). In a very uncertain context, many elements weigh on the profitability of companies, especially the increase in the cost of electricity and the indexation of rents, although the composition of the ILC (commercial rent index) has been changed. It used to consist of 50% inflation, 25% construction cost index and 25% change in retail turnover. From now on, only inflation and the cost of construction will be taken into account because the former formula includes the sales made by the ‘pure players’ of the Net, which increase the rent of physical stores.

Leave a Reply

Your email address will not be published. Required fields are marked *