French luxury firm KeringIs revenue ascends to €5,077 mn in Q1

Kering Group reported a 2 per cent YoY growth in Q1 FY23 revenue to €5,077 million, up 1 per cent YoY on a comparable ba—sis, with sales in Western Europe and Japan leading the momen—tum. Gucci's revenue increased by 1 per cent YoY, while Yves Saint Laurent reported a 9 per cent YoY growth, and Bottega Veneta's revenue was stable at €395 million.

French firm Kering Group, the parent company of luxury brands such as Gucci, Yves Saint Laurent, and Bottega Veneta,has reported a 2 per cent year—on—year (YoY) growth in revenue to€5,077 million in the first quarter (Q1) of fiscal 2023 (FY23). This increase is up 1 per cent YoY on a comparable basis, with trends improving throughout the period.

The directly operated store network, including e—commerce,saw a 4 per cent YoY increase in revenue on a comparable basis,with all group houses contributing to the growth. Western Europe and Japan were the driving forces behind this momentum, while North America witnessed a decline in revenue. However, the Asia—Pacific region saw revenue growth due to the gradual recovery of the Chinese market.

Wholesale and other revenues in Q1 FY23 were down by 10 per cent YoY on a comparable basis, as the group’s houses con—tinue to reduce the share of wholesale in their distribution, the company said in a press release. Gucci's revenue for Q1 FY23 amounted to €2,616 million, an increase of 1 per cent YoY both as reported and on a comparable basis. Sales in the directly operated store network grew 1 per cent on a comparable basis relative to the first quarter of 2022. Revenue from all key product categories was up, with handbags, the Valigeria collection of travel accessories,and women’s ready—to—wear leading the way. Wholesale revenue was down by 7 per cent YoY on a comparable basis.

Yves Saint Laurent reported a revenue of €806 million in Q1 FY23, up 9 per cent YoY as reported and up 8 per cent YoY on a comparable basis. Sales in the directly operated store network rose 14 per cent YoY on a comparable basis, fuelled by strong perfor—mances in leather goods and ready—to—wear, together with the success of the house’s elevation strategy. The streamlining of the wholesale channel continued, with revenue down by 12 per cent YoY on a comparable basis.

Bottega Veneta's first—quarter revenue was stable at €395 million. As the house continued to overhaul its directly operated store network—expanding selling space and refurbishing stores—business levels were sustained, with retail revenue up by 5 percent YoY on a comparable basis. Wholesale revenue was down by 14 per cent YoY on a comparable basis, reflect—ing the accelerated optimisation of this channel.

Kering's other houses generated revenue of €890 million in the first quarter, down 9 per cent YoY as re—ported and on a comparable basis. Sales in the directly operated store network rose by 7 per cent YoY on a com—parable basis, with all houses up. Trends at Balenciaga and Alexander McQueen were positive, while Brioni’s sales were excellent. Wholesale revenue, down by 32 per cent YoY on a comparable basis, was impacted by the other houses’ streamlining strategy, the release added.

“Kering’s performance in the first quarter remained mixed, as we had anticipated. As we work to augment the desirability of our brands and raise their profile in key markets, we are encouraged by the gradual improvement in activity month after month during the period. A host of initiatives undertaken by all our houses to enhance their appeal and exclusivity lays the foundations for sustained,profitable growth,” said Francois—Henri Pinault, chairman and chief executive officer.