PARIS—Against a backdrop of Kering Group's report of its fiscal 2023 revenues, which saw an overall decline of 4 percent in what its chairman said was a "trying year," the group also reported its Kering Eyewear revenues hit a new record of €1.5 billion (up 35 percent as reported and up 10 percent on a comparable basis), "benefiting from the consolidation of Maui Jim and excellent development of the brand portfolio." In the fourth quarter, sales were up 6 percent on a comparable basis.

Kering Eyewear 's recurring operating income, the company said, rose sharply to €276 million, "reflecting Maui Jim’s contribution and the eyewear division’s newly acquired scale," it noted. The group also said that "Kering Eyewear strengthened its position in the luxury eyewear industry by acquiring 100% of Usinage & Nouvelles Technologies (UNT) on June 30, 2023." UNT is based in the Jura region of France and is a key player in the manufacturing of high precision metal and mechanical components for the Luxury eyewear sector, as VMAIL reported.

Taking into account Kering Beauté and corporate costs, the Kering Eyewear & Corporate segment posted a recurring operating loss of €7 million, an improvement from 2022. Creed’s high level of profitability offset start-up costs at Kering Beauté.

The overall Kering Group saw revenues decline for the year in most of its major brands and houses to €19.6 billion in 2023, a decrease of 4 percent as reported, including significant impacts from changes in exchange rates and the scope of consolidation (-4 percent and +2 percent respectively) and down 2 percent on a comparable basis. The group noted that its sales from the directly operated retail network, including e-commerce, were stable on a comparable basis. 

Wholesale and Other revenue fell 11 percent on a comparable basis, as the group further strengthened the exclusivity of its Houses’ distribution. 2023 net income attributable to the group amounted to €3.0 billion. In the fourth quarter of 2023, revenue was down 6 percent as reported and down 4 percent on a comparable basis.

Sales from the directly operated retail network dropped 2 percent on a comparable basis. Revenue grew in Asia-Pacific and Japan. Trends in Western Europe and North America improved sequentially for the fiscal year period. 2023 recurring operating income totaled €4.7 billion in 2023, down 15 percent from the 2022 level. 

Stated François-Henri Pinault, chairman and chief executive officer of the group, “In a trying year for the group, we strengthened our organization and took significant steps to further enhance the visibility and exclusivity of our houses. We are focused on revitalizing Gucci, leveraging the unique blend of craftsmanship, Italian heritage and modernity that characterizes this iconic house.

The launch of Kering Beauté and the acquisition of Creed, a storied maker of high-end fragrances, will enable us to capture our share of the steadily growing beauty market. In a market environment that remains uncertain in early 2024, our continuing investments in our houses will put pressure on our results in the short term. Thanks to the experience gained across the group through a decade of outstanding expansion, we are confident in achieving our long-term ambitions,” Pinault said.

The company added, "In an environment of ongoing economic and geopolitical uncertainty, Kering will continue to execute on its strategy and vision, in pursuit of two key ambitions: to maintain a trajectory of long-term profitable growth, and to confirm its status as one of the most influential groups in the luxury industry.''
The company's announcement added, "In 2024, in a context of ongoing normalization of the sector’s growth, the impact of Kering’s investment strategy will weigh on the group’s full-year recurring operating income (based on the scope of consolidation and exchange rates at Dec. 31, 2023), which should post a decline compared to the level reported in 2023, particularly in the first half of the year. The group will prioritize expenses and investments supporting the long-term development and growth of its houses, while remaining vigilant and disciplined with regards to its cost structure."

Kering manages the development of a series of renowned houses in fashion, leather goods and jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin and Ginori 1735, as well as Kering Eyewear and Kering Beauté.