Kering

Kering (French: [kɛːʁiŋ]) is a French-based multinational corporation specializing in luxury goods. It owns the brands Gucci, Balenciaga, Bottega Veneta, Yves Saint Laurent, Creed and Alexander McQueen.

Kering

Formerly	Pinault S.A. Pinault-Printemps-Redoute PPR
Company type	Public (Société Anonyme)
Traded as	Euronext Paris: KER CAC 40 Component
ISIN	FR0000121485
Industry	Luxury
Founded	1962; 62 years ago (1962)
Founder	François Pinault
Headquarters	40 rue de Sèvres, Paris 7e, France
Key people	François-Henri Pinault (Chairman and CEO)
Products	Luxury goods
Revenue	€13.1 billion (2019)
Operating income	€3.13 billion (2019)
Net income	€1.97 billion (2020)
Total assets	€27.148 billion (2020)
Total equity	€12.035 billion (2020)
Number of employees	38,000 (2019)
Subsidiaries	Alexander McQueen Balenciaga Bottega Veneta Boucheron Brioni Creed Gucci Pomellato Qeelin Yves Saint Laurent
Website	kering.com
Footnotes / references ^[1]

The timber-trading company Pinault S.A. was founded in 1962, by François Pinault. After the company was quoted on Euronext Paris in 1988, it became the retail conglomerate Pinault-Printemps-Redoute (PPR) in 1994, and the luxury group Kering in 2013. The group has been a constituent of the CAC 40 since 1995. François-Henri Pinault has been president and CEO of Kering since 2005. In 2020, the group's revenue reached €13.1 billion.

History

Retail

In 1962, François Pinault opened the Établissements Pinault in Brittany (France) specialized in timber trading. The company became Pinault S.A.. In 1988, Pinault S.A. was listed on the Paris Stock Exchange.^[2]

In 1989, Pinault S.A. purchased 20% of CFAO, a French distribution conglomerate active throughout Africa. In 1990, Pinault S.A. and CFAO merged, and François Pinault became head of the newly formed group. This accelerated its acquisitions in the retail sector: Conforama (French furniture retailer) in 1991, Printemps (department stores in France) in 1992, which also owned 54% of La Redoute (French mail-order shopping retailer), and Fnac (French bookstore, multimedia and electronics retailer) in 1994. To align with its new activities, the group was renamed Pinault-Printemps-Redoute in 1994.^[2]

In 1999, Pinault-Printemps-Redoute purchased a controlling 42% stake of the Gucci group for $3 billion and 100% of Yves Saint Laurent.^[3][4][5] After Gucci, Pinault-Printemps-Redoute acquired Boucheron (2000), Bottega Veneta (2001), Balenciaga (2001), and signed partnerships with Alexander McQueen and Stella McCartney.^[6] In 2004, Pinault-Printemps-Redoute reached a 99.4% ownership of Gucci.^[7]

Luxury

In 2003, François Pinault handed over the helm of Artémis, the family holding company that controlled Pinault-Printemps-Redoute to his son François-Henri. In 2005, François-Henri Pinault became president and CEO of Pinault-Printemps-Redoute, succeeding Serge Weinberg.^[8] The group officially changed its name to PPR.^[9] and continued acquiring luxury brands: The Sowind Group (owner of Girard-Perregaux) and Brioni (2011),^[10] the Pomellato Group (Pomellato and Dodo, 2012),^[11] Qeelin (2012),^[12] Christopher Kane (2013),^[13] Ulysse Nardin (2014).^[14] To further this strategy, PPR offloaded its retail assets: Le Printemps (2006),^[15] Conforama (2011),^[16] CFAO (2012),^[17] Fnac (2012), and La Redoute (2013).^[18] PPR also developed a Sport & Lifestyle portfolio with the acquisition of Puma (2007),^[8] Cobra Golf (2010),^[19] and Volcom (2011).^[20] Cobra and Volcom have since then been divested and Kering only holds a minority share in Puma.

In March 2013, PPR changed its name to Kering.^[21]

In December 2014, Alessandro Michele, a 12-year accessories designer at Gucci, was named PPR's creative director. In 2015, Kering named a new creative director, Anthony Vaccarello, to renew the brand's props.^[22] In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga.^[23] Kering appointed Daniel Lee as creative designer of Bottega Veneta in June 2018.^[24]

In 2014, Kering hired Roberto Vedovotto to launch its own eyewear manufacturing division, Kering Eyewear, and pilot its development.^[25] In March 2017, Richemont partnered with Kering Eyewear to produce Cartier, Alaïa, and Montblanc eyewear.^[26] In September 2019, Kering Eyewear opened a 15,000 square-metre logistics centre near Padua, Italy, with an annual output capacity of five million eyewear units.^[27] In March 2022, it was announced Kering Eyewear had acquired the Hawaiian eyewear brand Maui Jim.^[28] In March 2018, Kering agreed to sell its shares of Stella McCartney back to its eponymous owner.^[29] Kering spun off the brand Puma in 2018^[30] and sold Volcom the following year. In 2020, Kering made 13.1 billion euros in revenue, -17.9% from the previous year.^[1] In 2021, Kering led a $216-million investment round in the luxury resale website Vestiaire Collective^[31] and acquired 100% stake in the Danish luxury eyewear manufacturer Lindberg.^[32] In January 2022, the group announced its intention to sell its watches division, namely the brands Girard-Perregaux and Ulysse Nardin.^[33]

In October 2023, Kering announced that third quarter revenue was down 13%.^[34] Pinault blamed this decline on the turnover of leadership in both business and creative aspects at multiple brands, as well as challenging macroeconomic conditions decreasing 'aspirational' consumer spending. ^[35]

Activities

Description

Kering's headquarters are located in the former Hopital Laennec in the 7th arrondissement of Paris. The parent holding company of Kering is Groupe Artémis. In 2020, Kering made 13.1 billion euros in revenue, down 17.5% from the previous year. The group has 30,956 employees and 1,381 stores. On 24 January 2022 Kering announced the sale of its entire stake of GIRARD-PERREGAUX and ULYSSE NARDIN to their current management.^{[citation needed]}

Brands

Brand	Acquisition Year	Country
Gucci	1999	Italy
Yves Saint Laurent	1999	France
Boucheron	2000	France
Bottega Veneta	2001	Italy
Balenciaga	2001	Spain
Alexander McQueen	2001	United Kingdom
Puma	2007	Germany
Brioni	2011	Italy
Girard-Perregaux (Former)	2011	Switzerland
JeanRichard	2011	Switzerland
Qeelin	2012	China
Pomellato	2012	Italy
Dodo	2012	Italy
Ulysse Nardin (Former)	2014	Switzerland
Lindberg	2021^[36]	Denmark
Maui Jim	2022	United States
Creed	2023^[37]	United Kingdom / France
Valentino (30%)^[38]	2023	Italy

Governance

Board of directors

• François-Henri Pinault - Chairman and CEO
• Jean-François Palus - deputy CEO
• Independent directors:
  • Yseulys Costes
  • Jean-Pierre Denis
  • Ginevra Elkann^[39][40]
  • Sophie L'Hélias
  • Claire Lacaze
  • Baudouin Prot
  • Daniel Ricardi
  • Sapna Sood
  • Emma Watson
  • Héloïse Temple-Boyer^[41]

Executive committee

• François-Henri Pinault - Chairman and CEO
• Jean-François Palus - Deputy CEO
• Francesca Bellettini - President and CEO Saint Laurent
• Marco Bizzarri - President and CEO Gucci
• Grégory Boutté : Chief Client and Digital Officer
• Jordan Alexander - Director and Marketing Gucci
• Cédric Charbit : CEO Balenciaga
• Marie-Claire Daveu - Chief Sustainability Officer and Head of Institutional Affairs
• Valérie Duport - Chief Communications and Image Officer
• Jean-Marc Duplaix - CFO
• Béatrice Lazat - VP Human Resources
• Bartolomeo Rongone - President and CEO Bottega Veneta
• Roberto Vedovotto - CEO Kering Eyewear
• Raffaella Cornaggia - CEO Kering Beauté
• Christophe Artaux - CEO Qeelin
• Sabina Belli - CEO Pomellato

Financial data

Results (in € millions)

Year	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Sales	17 931	17 761	20 201	16 525	11 008	12 227	9 736	9 748	10 037	11 584	12 385	15 478	13 665.2	15 883.3	13 100.2
EBITDA	1 540	2 096	2 140	1 790	1 649	1 911	2 067	1 750		1 647	1 886	2 948	3 943.8	4 778.3	4 574.2
Net results	680	1 058	924	985	965	986	1 048	50	528.9	696	814	1 786	3 714.9	3 211.5	1 972.2
Net debt	3 461	6 121	5 510	4 367	4 000	3 395	2 491	3 443		4 679	4 371	3 049

Market data

Years	2007	2008	2009	2010	2011	2012		2016	2017	2018	2019
Number of shares (in millions)	128	128.4	126.5	126.8	127	126.2		126.2	126.3	126.3	126.3
Market capitalizations (in millions of euros)	14089	5897	10 661	15 093	14 034	17 764		26,935	49 628	63,203	73,899
Number of daily transactions	692 022	1 116 420	701 105	453 415	385 265	317 960

• Date of IPO: 25 October 1988, Second Marché
• Shares listed on the Euronext Paris
• Member of the CAC 40 index since 9 February 1995
• Nominal value = euro
• Main shareholders: Artémis 40.8%

From 2016 to 2021, Kering's share price has increased by 352%.^[42] In September 2018, Kering joined the STOXX Europe 50 index.^[43] In November 2018, the group announced the share repurchase of 1% of its share capital.^[44] In 2019, Kering paid a settlement of 1.25 billion euros ($1.4 billion) to the Italian tax authorities.^[45][46] In 2021, the group repurchased 650,000 of its shares to cancel half of them and allocate the other half to its employees.^[47]

Kering Foundation

The Kering Foundation (previously known as PPR Corporate Foundation for Women's Dignity and Rights) is a foundation created and financed by Kering since 2009. The Board of Directors is under the chairmanship of François-Henri Pinault and is made up of 16 members, meeting twice a year.

Social entrepreneurs sponsorship

Each year, three social entrepreneurs are selected for the economic viability and the social added value of their projects in favor of women, their families and communities. Each selected project proposer is awarded 15 000 euros, and also receives personal and business sponsoring as well as guidance from a Kering staff member.

• 2010
  • Sakina M’Sa, founder of the Trevo atelier in Paris
  • Maria-Teresa Leal, founder of the COOPA-ROCA, a women's cooperative in a Rio's favela in Brazil
  • Anne Roos-Weil, co-founder of the Pesinet association, fighting against infant mortality in Mali.
• 2012^[48]
  • Sophia Klumpp and Paul Grinvalds, for their social enterprise AFRIPads, encouraging the educational and vocational integration of girls in Uganda through offering washable sanitary pads. This project is sponsored by a Human Resources manager of Bottega Veneta, on communications and human resources strategies.
  • Delphine Kohler, for her organisation Filles du Facteur, supporting the empowerment of Burkinabian women through the production of crocheted accessories made from recycled plastic bags. This project will benefit from the guidance of a manager of Kering Strategy, on brand positioning and distribution strategy.
  • Miriam Espinoza and Patricia Marihuen, for the association Relmu Witral, preserving the traditional skills of the Mapuche women weavers in Chile. This project is supported by the Retail manager of Volcom, who will provide help and guidance with the redefinition of the product offer and marketing strategy.
• 2018^[49]
  • Beijing Yuanzhong Gender Development Center from China.
  • Callisto, from United States.
  • Chayn, from the United Kingdom.
  • Colori Vivi, from Italy.
  • du Pain & des Roses, from France.
  • GENDES, A.C. from Mexico.
  • Rebuild, Unite and Nurture, from China.

Awareness raising programs

The foundation supports initiatives fostering public information and awareness about violence against women and women's empowerment (education, training, professional integration, Income Generating Activities, etc.) for both Kering employees and the lay public. For example, the foundation has supported the movie, Desert Flower, for its release in 2010 in France:^[50] the movie is based on the true story of Waris Dirie, who was born in the Somali desert and who suffered excision before becoming an international top model.

Other projects

The foundation offers its expertise and advice for Kering’s brands on their solidarity programs and promotes the development of projects which aim to empower women. For example, Kering Foundation associated with Gucci to create the Spotlighting Women Documentary Awards through Tribeca Film Institute.^[51] The three 2011 laureates were: Barefoot Engineers, Justice For Sale, The World Before Her.

In 2012 the three winners are Alia Ruby Blade, Stargazing and The Supreme Price.^[52]

See also

• Kering Foundation
• François Pinault
• François-Henri Pinault
• Groupe Artémis

References

1. Annual results 2020
2. Guardian Staff (3 April 1999). "From timber merchant to corporate axeman". The Guardian. ISSN 0261-3077. Retrieved 25 August 2019.
3. "Gucci Group Agrees to Sell 40% Stake to French Retailer". Los Angeles Times. 20 March 1999. Retrieved 24 July 2017.
4. Sri Ramakrishnan (16 November 1999). "Gucci to Buy Parent Of Yves Saint Laurent". Washingtonpost.com. Retrieved 24 July 2017.
5. "Gucci fades on court ruling". Cnn.com. 27 May 1999. Retrieved 24 July 2017.
6. McNeil, Peter; Riello, Giorgio (19 May 2016). Luxury: A Rich History. Oxford University Press. p. 256. ISBN 9780191640278.
7. Suzanne Kapner (23 March 2004). "PPR moves to buy last 30% of Gucci Group". Nypost.com. Retrieved 24 July 2017.
8. Joshua Levine (15 February 2013). "The Man Behind the Curtain". The New York Times. Retrieved 24 July 2017.
9. François Pinault just gave $109 million to help rebuild the Notre-Dame. Meet the French billionaire who owns Christie's and founded the luxury giant behind Gucci
10. Christina Passariello (8 November 2011). "PPR Buys Menswear Brand Brioni". Wsj.com. Retrieved 24 December 2013.
11. Luisa Zargani, Miles Socha (24 April 2013). "Kering Acquires Pomellato". Wwd.com. Retrieved 24 July 2017.
12. "PPR acquires majority stake in Chinese Qeelin". Fashiounited.com. 9 December 2012. Retrieved 24 July 2017.
13. Ella Alexander (15 January 2013). "PPR Buys Majority Stake In Christopher Kane". Vogue.co.uk. Retrieved 24 July 2017.
14. Elizabeth Doerr (30 July 2014). "Kering (Previously PPR, Gucci Group) Acquires Ulysse Nardin". Forbes.com. Retrieved 24 July 2017.
15. Sara Gay Forden, Jacqueline Simmons (20 June 2006). "As sales fall, PPR works to unload Printemps". The New York Times. Retrieved 24 July 2017.
16. "PPR Looks to Sell Conforama". The Wall Street Journal. from the original on 11 June 2022.
17. "Toyota Tsusho to buy PPR stake in CFAO". Reuters. from the original on 11 June 2022.
18. PPR says in talks to sell La Redoute by year-end
19. "Puma acquires Cobra Golf and announces becoming Cobra-Puma Golf". Worldgolf.com. 10 May 2010. Retrieved 24 July 2017.
20. Chris V. Nicholson (2 May 2011). "PPR to Buy Volcom, a Sportswear Maker". The New York Times. Retrieved 24 July 2017.
21. Jolly, David (22 March 2013). "PPR to Show Breton Roots With Rebranding as Kering". The New York Times. Retrieved 22 November 2023.
22. Maura Brannigan (10 February 2017). "10 months after Hedi Slimane's departure, Yves Saint Laurent is still Kering's big money-maker". Fashionista.com. Retrieved 24 July 2017.
23. Jess Cartner-Morley (2 October 2016). "Demna Gvasalia reinvigorates Balenciaga with strategic disrespect". Theguardian.com. Retrieved 24 July 2017.
24. Radhika Seth, Daniel Lee Appointed Creative Director Of Bottega Veneta, Vogue, 15 June 2018
25. Gilles, Florent (18 November 2013). "Former Safilo CEO Roberto Vedovotto joins Kering". FashionNetwork.com. Retrieved 25 October 2022.
26. Deeny, Godfrey. "Kering inks eyewear partnership with Cartier". FashionNetwork.com. Retrieved 7 April 2019.
27. Dominique Muret, Kering Eyewear creates €500 million business in five years, Fashion Network, 7 October 2019
28. "Kering Eyewear acquires Hawaiian eyewear brand Maui Jim". The Moodie Davitt Report. 14 March 2022. Retrieved 14 March 2022.
29. Ben Stevens (29 March 2018). "Kering offloads entire stake in Stella McCartney". Retailgazette.co.uk. Retrieved 19 June 2018.
30. Beth Wright (16 May 2018). . Just-style.com. Archived from the original on 13 November 2019. Retrieved 19 June 2018.
31. "Kering increases investment in resale, while LVMH steers clear". Glossy. 2 March 2021. Retrieved 21 March 2021.
32. Mira, Nicola (9 July 2021). "Kering Eyewear buys 100% stake in Danish brand Lindberg". FashionNetwork.com. Retrieved 30 September 2021.
33. Sudip Kar-Gupta, Mimosa Spencer and Silke Koltrowitz, Luxury goods group Kering to sell watches division, Reuters.com, 24 January 2022
34. Latham, Tori (26 October 2023). "Sales at Gucci Fell 7% in the Third Quarter of the Year". Robb Report. Retrieved 26 October 2023.
35. "Luxury shoppers are buying less Balenciaga and Gucci, in latest signs of an end to the 'roaring 20s'". Fortune. Retrieved 26 October 2023.
36. Disko. "Kering Eyewear acquires the Danish luxury eyewear brand Lindberg". www.kering.com. Retrieved 3 July 2023.
37. Bossi, Andrea (26 June 2023). "Kering Makes First Major Beauty Acquisition". Fashionista. Retrieved 22 November 2023.
38. "Kering acquisisce il 30% di Valentino per 1,7 miliardi di euro". ilsole24ore.com. ilsole24ore.com. 28 July 2023. Retrieved 28 July 2023.
39. "Power Moves | Kering Adds to Board of Directors, Vanity Fair Italia Names New Editor-In-Chief". The Business of Fashion. 8 November 2018. Retrieved 9 November 2018.
40. Singh, Prachi. "Kering board nominates Ginevra Elkann as Director". Retrieved 9 November 2018.
41. Prachi Singh (18 December 2018). "Héloïse Temple-Boyer replaces Patricia Barbizet as board director at Kering". Fashionunited.uk. Retrieved 8 January 2019.
42. "Investors in Kering (EPA:KER) have made a fantastic return of 427% over the past five years". Simplywall.st. 15 August 2021. Retrieved 14 November 2021.
43. Singh, Prachi (27 September 2018). "Kering shares enter Stoxx 50 European Index". Fashion United. Retrieved 16 October 2018.
44. "Why Kering Is Buying Back Its Shares". The Business of Fashion. 29 October 2018. Retrieved 9 November 2018.
45. "Gucci Owner Investigated by French Authorities Over Taxes (1)". www.bloomberglaw.com. 16 December 2020. Retrieved 17 December 2020.
46. Emilio Parodi, Sarah White, Gucci owner Kering agrees record Italian tax settlement, Reuters, 9 May 2019
47. "Interim Dividend for Financial Year 2021". GlobeNewswire. 9 December 2021. Retrieved 11 December 2021.
48. . Fondationppr.org. 9 June 2010. Archived from the original on 2 April 2012. Retrieved 7 September 2013.
49. "Kering Foundation Awards". Kering Foundation. 19 June 2018. Retrieved 16 July 2018.
50. . Desert Flower Foundation. 16 November 2011. Archived from the original on 18 November 2011. Retrieved 7 September 2013.
51. "Gucci launches new documentary award (Vogue.com UK)". Vogue.co.uk. 23 May 2011. Retrieved 7 September 2013.
52. "Tribeca Film Institute". Tribeca Film Institute. 11 September 2001. Retrieved 7 September 2013.

External links

• Official website