Wholesale and other revenues saw an 11 percent drop on a like-for-like basis, as Kering further solidified the exclusivity of its home distribution networks. Recurring operating income fell to €4.7 billion, a 15 percent decline from FY22, and recurring operating margin settled at 24.3 percent versus 27.5 percent a year earlier. The group's attributable net income amounted to €3 billion for FY23, Kering said in a press release.
Kering's FY23 revenue fell to €19.6 billion, a decline of 4 percent. Gucci's revenue fell 6 percent, with a notable 2 percent decline on a comparable basis. Yves Saint Laurent and Bottega Veneta also faced declines in FY23, although with some growth in directly operated retail networks. In Q4FY23, the company's revenue declined 6 percent.
Breaking down performance by brand, Gucci posted €9.9 billion in revenue, a decline of 6 percent on a reported basis and 2 percent on a comparable basis. Sales from the directly operated retail network, which account for 91 percent of Gucci's revenue, declined 2 percent on a like-for-like basis, while wholesale revenue fell 5 percent.
Yves Saint Laurent reported revenue of 3.2 billion euros, 4 percent less than reported and 1 percent less on a comparable basis. The brand saw a 4 percent increase in sales from its directly operated retail network, while wholesale revenue fell 26 percent on a like-for-like basis.
Bottega Veneta's revenues amounted to €1.6 billion, down 5 percent as reported and down 2 percent on a comparable basis. Sales from its directly operated retail network increased 4 percent, aligning with the house's strategic focus, while wholesale revenue decreased 24 percent.
Revenue from other houses amounted to €3.5 billion, down 9 percent as reported and down 8 percent on a comparable basis. Sales of the directly operated retail network increased 3 percent, but wholesale revenue saw a 29 percent decline.
“In a difficult year for the group, we strengthened our organization and took significant measures to further improve the visibility and exclusivity of our houses. In a market environment that remains uncertain in early 2024, our continued investments in our homes will put pressure on our results in the near term. “Thanks to the experience gained across the group over a decade of remarkable expansion, we are confident of achieving our long-term ambitions,” he said. Francois-Henri Pinault, President and CEO.
In the fourth quarter of FY23 (Q4 FY23), Kering's revenue decreased 6 percent on a reported basis and 4 percent on a comparable basis, and sales of the directly operated retail network fell 2 percent. However, there was growth in Asia-Pacific and Japan, with improving trends in Western Europe and North America.
Gucci's fourth-quarter revenue declined 4 percent on a comparable basis, and sales from the directly operated retail network also declined 4 percent. However, wholesale revenue in the fourth quarter increased 3 percent on a comparable basis. Yves Saint Laurent's performance in the fourth quarter showed stability in sales of the directly operated retail network, despite an overall decline of 5 percent on a comparable basis. Bottega Veneta sales fell 4 percent on a comparable basis and rose 5 percent in the directly operated retail network. Sales of the other houses fell 5 percent on a like-for-like basis, while sales of the directly operated retail network rose 4 percent.
Fiber2Fashion News Desk (DP)
