The parent company of upscale labels like Gucci, Yves Saint Laurent, and Bottega Veneta, French corporation Kering Group, announced a 2% year-over-year (YoY) increase in revenue to €5,077 million in the first quarter (Q1) of fiscal 2023 (FY23). Similarly, this growth is up 1% YoY, with trends improving over time.
Comparatively, the directly run retail network’s revenue increased by 4% YoY, with all group houses contributing to the rise. Western Europe and Japan drove this momentum, while North America saw a fall in sales. However, the Asia-Pacific witnessed increased revenue due to the Chinese market’s slow but steady recovery.
According to a press statement from the firm, the group’s houses continue to lower the percentage of wholesale in their distribution, which resulted in a 10% YoY decline in wholesale and other revenues in Q1 FY23.
Gucci reported €2,616 million in revenue for Q1 FY23, an increase of 1% YoY as reported and on a comparable basis. Compared to the first quarter of 2022, sales in the directly operated retail network increased by 1%. All major product categories increased in revenue, although handbags, the Valigeria line of travel items, and women’s ready-to-wear took the lead. Comparatively, wholesale revenue decreased by 7% year over year. Income for Yves Saint Laurent was €806 million in the first quarter of FY23, up 9% on a reported basis and 8% on a comparable basis. Sales in the network of directly run stores increased 14% YoY on an equal basis, driven by solid results in ready-to-wear and leather items as well as the success of the house’s elevation strategy. The wholesale channel’s streamlining continues, with revenue down by 12% YoY on a comparable basis.
The first-quarter sales for Bottega Veneta remained steady at €395 million. Business levels were maintained, and retail sales increased by 5% YoY on a comparable basis as the company revamped its directly controlled shop network by extending selling space and renovating storefronts. On an equal basis, wholesale revenue decreased by 14% YoY due to the channel’s rapid optimization.
Revenue from Kering’s other houses was €890 million in the first quarter, a 9% year-over-year decline both as reported and on a comparable basis. On an equal basis, sales in the directly operated retail network increased by 7% YoY, with all houses up. Positive trends were seen at Balenciaga and Alexander McQueen, while Brioni’s sales were outstanding. The announcement stated that the other houses’ simplifying strategy affected wholesale revenue, which was down 32% YoY on a comparable basis.
“As we had predicted, Kering’s performance in the first quarter remained uneven. The continuous uptick in activity month after month over time gives us hope as we try to increase our brands’ popularity and their profile in essential areas. The foundations for sustainable, profitable development have been laid by several efforts made by all of our houses to increase their allure and exclusivity, according to Francois-Henri Pinault, chairman, and CEO.
