The luxury titan’s revenue was up 15 percent year-over-year, though sales slipped in the fourth quarter.
Kering posted strong full-year results Wednesday [February 15] morning despite a mixed fourth quarter.
Its jewelry houses, which include Boucheron and Pomellato, had an “outstanding” year, noted the company.
Here are four important takeaways from the luxury titan’s most recent earnings report.
It was a good year for Kering, but a rough fourth quarter
The luxury conglomerate owns several high-end brands, including Gucci and Yves Saint Laurent, as well as jewelry brands Boucheron and Pomellato.
Kering posted full-year revenue of €20.35 billion ($21.75 billion), up 15 percent year-over-year.
Revenue from its directly operated stores, which includes its e-commerce sites, was up 10 percent year-over-year on a comparable basis, driven by gains in Western Europe and Japan.
However, in the fourth quarter, revenue slipped 2 percent to €5.28 billion ($5.65 billion).
Kering noted mixed performances among its houses and regions.
Its star brand, Gucci, saw sales increase 8 percent for the full year, but fall 14 percent in the fourth quarter. Sales at the brand’s stores were down 15 percent, “significantly affected” by the COVID-19 situation in China during the quarter.
“All our houses posted record revenues and contributed to higher operating income in 2022. But these good performances were not uniformly up to our ambitions and potential,” said CEO François-Henri Pinault.
“Beyond the challenges some of our houses faced, notably towards the end of the year, we are convinced that we are pursuing the right strategy for the long term.”
Jewelry sales were strong in 2022
The company’s jewelry brands fall into its “other houses” division, alongside Alexander McQueen and Balenciaga.
Its jewelry portfolio consists of Boucheron, Pomellato, DoDo, and Qeelin.
For the full year, revenue in the division totaled €3.87 billion ($4.14 billion), an 18 percent increase.
Growth was driven by Kering’s directly operated retail network, with sales up 27 percent on a comparable basis. Wholesale revenue slipped 6 percent.
In the fourth quarter, revenue in the division fell 3 percent to €951 million ($987 million).
In its directly operated stores, quarterly sales were up 2 percent, with double-digit growth in Western Europe and Japan. Wholesale revenue fell 26 percent.
“Kering’s jewelry houses once again achieved outstanding progress and reached significant milestones. Boucheron posted firm, steady growth, while Pomellato continued to perform well in Western Europe and Japan. Finally, Qeelin grew at a rapid pace,” said the company.