Luxury goods powerhouse Kering Group has reported revenues of €19.6 billion in 2023, a decrease of -4% year-on-year on a reported basis and -2% on a comparable basis (exchange rates and scope).
EBITDA fell by -9% to €6,569 million and net profit reached €3 billion, down by -18%.
By key brand, Gucci posted a -6% decline (-2% on a comparable basis) in reported revenue to €9,873 million, with Yves Saint Laurent down -4% (-1% comparable) to €3,179 million and Bottega Veneta at €1,645 million, down by -5% (-2% comparable).
Kering Eyewear reported €1.502 million in 2023 sales, up by +35% year-on-year, with the benefit of of Maui Jim’s consolidation and development of the brand portfolio. In Q4, the eyewear division grew by +6% on a comparable basis.
Kering Eyewear recurring operating income rose sharply to €276 million, also reflecting Maui Jim’s contribution and the Eyewear division’s newly acquired scale – aided by the further acquisition of French eyewear component maker Usinage & Nouvelles Technologies (UNT) on 30 June 2023.
Kering Eyewear also noted a continuing recovery in travel retail, a strong upturn in Asia Pacific and Europe in the year plus robust growth from key distribution channels such as Opticians, Optometrists and Ophthalmologists.
Kering Group Chairman & CEO Francois-Henri Pinault told investors: “2023 was a mixed year. Market conditions began to deteriorate as many of our brands were evolving their operating models and as a consequence our performance did not match our expectations.
“We made a series of decisions to speed up the transition and to seize the opportunities for the long term. We have decided that despite the current uncertain environment we should not reduce our investment in the future.
“Our priority is to enhance the exclusivity and desirability of all our houses, first and foremost of Gucci. This [strategy] will cause impact on our results in the short-term but we are determined to make short-term pain pay off in the long term.”
On Kering Eyewear, he said: “We have grown Kering Eyewear in a meaningful way. In 2023 we added Maui Jim and with €1.5 billion in sales, Kering Eyewear is now the world’s second-largest eyewear maker.”
*The Moodie Davitt Report visited Milan recently as Kering Eyewear hosted a VIP event to launch Maui Jim’s Ekahi collection. Click here for our report. ✈
