Consolidated revenue in the third quarter of
2020: €3,717.7 million, -4.3% as reported, -1.2% on a
comparable basis
Regulatory News:
Kering (Paris:KER):
“In a tough environment, Kering achieved substantial revenue
recovery in the third quarter. The creativity of each of our Houses
and the agility of our organization led to a sharp rebound in
sales, nearly matching the level of the 2019 third quarter. We are
pursuing with determination the implementation of our strategic
initiatives - the internalization of our e-commerce activities
reached other key milestones and we continue bolstering our growth
platforms. With a solid financial situation, further reinforced
recently, we keep investing in our Houses, to enhance their
exclusivity, and strengthening our positions. Against a backdrop
that remains uncertain, and despite limited visibility, we are well
prepared and confident in our ability to deliver good performances
over time.”
François-Henri Pinault, Chairman and Chief Executive
Officer
- Strong sequential improvement in third-quarter comparable
revenue, nearly unchanged from the third quarter of 2019 despite
the Covid-19 crisis.
- Revenue generated by the Luxury Houses’ directly operated
stores back to the third-quarter 2019 level.
- Kering reaped the benefits of sharp growth in certain regions,
notably North America (up 44.1%), driven by a rebound in local
demand, and Asia-Pacific (up 18.5%), fueled by excellent momentum
in Mainland China. Sales performances in Western Europe (down
41.0%) and Japan (down 22.8%) were still severely hampered by the
halt in tourism.
- Online sales continued their outstanding growth trajectory, up
101.9% in the third quarter, led by North America and Asia-Pacific.
In the first nine months of the year, e-commerce accounted for
12.5% of Group retail sales.
- Wholesale revenue down 5.2% on a comparable basis, reflecting
both the sharp slowdown in travel retail and the Group’s strategy
towards increasingly exclusive distribution.
- Ongoing Group strategic investments supporting the development
of its Houses, notably continuing progress in the internalization
of their e-commerce activities.
Revenue
(in € millions)
Q3 2020
Q3 2019
Reported change
Comparable change(1)
Total Houses
3,600.1
3,777.8
-4.7%
-1.6%
Gucci
2,087.8
2,374.7
-12.1%
-8.9%
Yves Saint Laurent
510.7
506.5
+0.8%
+3.9%
Bottega Veneta
332.5
284.3
+17.0%
+20.7%
Other Houses
669.1
612.3
+9.3%
+11.7%
Corporate and other
117.6
106.8
+10.1%
+13.8%
KERING
3,717.7
3,884.6
-4.3%
-1.2%
(1) On a comparable Group structure and
exchange rate basis.
Kering’s consolidated revenue in the third quarter of
2020 totaled €3,717.7 million, down 4.3% as reported and 1.2% on a
comparable basis. This performance represents a sharp rebound
compared with the year‑on‑year contraction of 43.5% as reported and
43.7% on a comparable basis posted in the second quarter of
2020.
Revenue from the Group’s Houses amounted to €3,600.1
million in the quarter (down 4.7% as reported and 1.6% on a
comparable basis).
Gucci: sales recovery in directly operated store network
Gucci’s revenue picked up sharply in the third quarter of 2020
compared with the prior quarter. At €2,087.8 million, revenue was
down 12.1% as reported and 8.9% on a comparable basis. Retail sales
were down 4.0% on a comparable basis. Gucci had an excellent
quarter in North America (up 43.7%) and delivered a solid
performance in Asia‑Pacific (up 10.6%), despite high bases of
comparison in recent years. The lack of tourists weighed on sales
during the period, especially in Western Europe (down 47.3%) and
Japan (down 25.9%), though tighter relationships with local
customers in Europe are paying off. Online sales grew sharply
worldwide, accounting for 12.6% of total retail sales. Wholesale
revenue contracted 31.6%, in line with the House’s ongoing strategy
of enhancing the exclusivity of its distribution by reducing the
number of third-party retailers.
Yves Saint Laurent: return to growth in all distribution
channels
Yves Saint Laurent returned to growth in the third quarter in
both its directly operated stores and its wholesale channel. Total
revenue of €510.7 million was up 0.8% year on year as reported and
3.9% on a comparable basis. Retail sales rose 5.8% on a comparable
basis. In addition to its strong appeal among local customers in
Europe and North America, Yves Saint Laurent’s market penetration
is increasing in the Asia-Pacific region, where awareness of the
brand is rising together with the expansion of its store network.
Online sales more than doubled year on year, notably reflecting the
successful launch of the House’s China e‑commerce site in June.
Buoyed by the success of the Fall 2020 collection, wholesale
revenue also rose, up 3.4%.
Bottega Veneta: successful collections and sharp sales
growth
Bottega Veneta’s third-quarter performance confirmed the
resounding success of its collections – both with the House’s
longstanding clientele and with new customers. Revenue totaled
€332.5 million, up 17.0% as reported and 20.7% on a comparable
basis. Sales generated in directly operated stores rose 12.1% on
top of high bases of comparison, spurred by an excellent
performance in Asia-Pacific and solid growth in North America.
Online sales achieved triple-digit growth. Revenue from wholesale
jumped 63.4%, reflecting significant market share gains.
Other Houses: solid growth of Couture & Leather Goods
Houses
Overall, the Other Houses returned to growth in the third
quarter, with revenue of €669.1 million, up 9.3% as reported and
11.7% on a comparable basis. Retail sales rose 10.0% and wholesale
revenue was up 16.7%. Alexander McQueen and Balenciaga delivered
double-digit growth in both retail and wholesale channels. These
two Houses are benefiting from the expansion of their directly
operated store networks in high-growth markets – especially
Asia-Pacific and North America – and progress in their online sales
is also accelerating. Despite their significant exposure to Western
Europe and Japan, the Jewelry Houses held up well, buoyed by
Boucheron’s growth in Asia-Pacific and Qeelin’s growing success.
The Watch Manufactures, hit hard by the crisis, are continuing to
focus on prime distribution.
Corporate and other
Revenue for the “Corporate and other” segment rose 10.1% as
reported and 13.8% on a comparable basis, led by Kering Eyewear’s
solid performance during the quarter.
REMINDER OF ANNOUNCEMENTS MADE SINCE JULY 1, 2020
Kerby Jean-Raymond and Kering launch “Your Friends in New
York” September 10, 2020 – Kerby Jean-Raymond and Kering
announced the creation of “Your Friends in New York”, a
groundbreaking new platform designed to empower the next generation
of innovators. “Your Friends in New York” will merge music, art,
philanthropy and wellness to form an ecosystem of creativity that
reimagines how consumers discover and interact with brands,
including Jean-Raymond’s own brand, Pyer Moss. Aiming to
participate in this powerful community for new talents and
innovation, Kering will support as a partner.
Kering and its Houses unite to support Mika’s benefit concert
“I Love Beirut” September 17, 2020 – Kering and its Houses –
Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander
McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ulysse Nardin,
Girard-Perregaux, Kering Eyewear – came together to support “I Love
Beirut”, the benefit concert organized by Lebanese-British singer
Mika for the victims of the explosions that devastated Beirut on
August 4. The concert was held on September 19. All profits,
including money from a fundraising campaign run in parallel, were
donated to the Lebanese Red Cross and Save the Children
Lebanon.
Kering successfully completes the sale of 5.9% of its Puma
shares October 6, 2020 – Kering announced the completion of the
sale following an accelerated bookbuilding process to qualified
investors only, as defined in Article 2(e) of Regulation (EU)
2017/1129, of approximately 5.9% of the share capital of Puma SE
for a total amount of approximately €655.6 million, corresponding
to a sale price per share of €74.50. Following the transaction,
Kering will retain a 9.8% stake in Puma. Kering and Artémis have
entered into a lock-up agreement relating to the Puma shares, which
will conclude 90 calendar days from the settlement date of the
shares, subject to certain exceptions or the waiver of the
agreement by the joint global coordinators. The net proceeds of the
transaction will be used for Kering’s general corporate purposes
and will further strengthen its financial structure.
Kering Japan opens its new headquarters in Tokyo October
9, 2020 – Kering announced the opening of its new headquarters in
Japan, located in Omotesando, Tokyo. In 2021, Bottega Veneta will
open a new flagship designed by Creative Director Daniel Lee on the
first three floors of the building. Previously the Japanese
headquarters of an Italian luxury brand, Kering acquired the
building in 2019 in partnership with a real estate investor.
Initially designed in 2004 by Pritzker-winning Japanese architect
Toyo Ito, the building’s unique façade has been a city landmark for
more than 15 years.
Progress report one year after the launch of the Fashion
Pact October 12, 2020 – One year after its creation, the
Fashion Pact published its first progress report. The Fashion Pact
is a global coalition of companies in the fashion and textile
industry that was created following a mission given to Kering
Chairman and CEO, François-Henri Pinault by French President,
Emmanuel Macron. Today it has 60 members, all committed to a common
core of ambitious key environmental goals in three areas:
mitigating climate change, restoring biodiversity and protecting
the oceans. With the support of some of the best technical experts,
the Fashion Pact’s signatories have identified seven tangible
strategic targets, particularly in areas where collaborative action
is needed to scale solutions and thus achieve critical impact on a
global scale. The coalition has made its first strides, including
implementing an operational structure, developing a dashboard of
KPIs to measure the impact of its joint efforts, and initiating
collaborative work on biodiversity drawing on the technical skills
of industry experts.
AUDIOCAST
An audiocast for analysts and investors will be held at
5.45 p.m. (CEST) on Thursday, October 22, 2020. It
can be accessed here. The slides (PDF) will be available
ahead of the audiocast at www.kering.com.
You can also listen to the presentation by phone using one of
the dial-in numbers below, but we would be grateful if you would
use the audiocast if possible.
France, Paris +33 (0)1 70 70 07 81 United Kingdom, London +44
(0)84 4481 9752 United States, New York +1 646 741 3167
International +44 (0)20 7192 8338
Confirmation code: 4969717
A replay of the audiocast will also be available at
www.kering.com.
About Kering A global Luxury group, Kering manages the
development of a series of renowned Houses in Fashion, Leather
Goods, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta,
Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo,
Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear.
By placing creativity at the heart of its strategy, Kering enables
its Houses to set new limits in terms of their creative expression
while crafting tomorrow’s Luxury in a sustainable and responsible
way. We capture these beliefs in our signature: “Empowering
Imagination”. In 2019, Kering had nearly 38,000 employees and
revenue of €15.9 billion.
Appendix: Revenue for the third quarter of
2020 and the nine months ended September 30, 2020
Revenue
(in € millions)
Q3 2020
Q3 2019
Reported change
Comparable change(1)
9 months ended Sept. 30,
2020
9 months ended Sept. 30,
2019
Reported change
Comparable change(1)
Total Houses
3,600.1
3,777.8
-4.7%
-1.6%
8,775.6
11,142.2
-21.2%
-20.8%
Gucci
2,087.8
2,374.7
-12.1%
-8.9%
5,160.0
6,991.8
-26.2%
-25.6%
Yves Saint Laurent
510.7
506.5
+0.8%
+3.9%
1,191.8
1,479.5
-19.4%
-19.1%
Bottega Veneta
332.5
284.3
+17.0%
+20.7%
835.6
833.3
+0.3%
+0.5%
Other Houses
669.1
612.3
+9.3%
+11.7%
1,588.2
1,837.6
-13.6%
-13.6%
Corporate and other
117.6
106.8
+10.1%
+13.8%
320.4
380.8
-15.9%
-15.7%
KERING
3,717.7
3,884.6
-4.3%
-1.2%
9,096.0
11,523.0
-21.1%
-20.6%
(1) On a comparable Group structure and
exchange rate basis.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201022005877/en/
Press Emilie Gargatte +33 (0)1 45 64 61 20
emilie.gargatte@kering.com
Marie de Montreynaud +33 (0)1 45 64 62 53
marie.demontreynaud@kering.com
Analysts/investors Claire Roblet +33 (0)1 45 64 61 49
claire.roblet@kering.com
Laura Levy +33 (0)1 45 64 60 45 laura.levy@kering.com
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