Luxury fashion giant Kering’s profits are on the rise: despite Gucci’s poor performance, Balenciaga’s bondage teddy bear ads condemned by Kim Kardashian and China’s lockdown, sales jumped 15 per cent

Feb 16 , 2023

Kering announced that its profits went up in 2022. Photo: Reuters

Kering, the luxury conglomerate behind Yves Saint Laurent, Bottega Veneta and Alexander McQueen, announced on February 15 that its net profit climbed 14 per cent, despite China’s lockdown in 2022

The group’s chairman, billionaire François-Henri Pinault, noted that there will be more focus on Gucci, formerly led by creative director Alessandro Michele, which fell in sales with Balenciaga

French luxury giant Kering on February 15 reported a rise in annual profit despite poor performances at its flagship brands Gucci and Balenciaga.

Kering, whose empire includes Yves Saint Laurent, Bottega Veneta and Alexander McQueen, said net profit climbed 14 per cent to US$3.9 billion (3.6 billion euros) in 2022.

Sales jumped 15 per cent to US$21 billion (20 billion euros).

Visitors walk past a Gucci store at Marina Bay Sands in Singapore, on January 19. Photo: Reuters

“We have reason to be satisfied about the global performances of all our houses except Gucci,” group chairman François-Henri Pinault said at the company results presentation.

Kering sales fell two per cent in the fourth quarter, dragged down by an 11 per cent drop at Gucci and three per cent at its “other houses”, which include Balenciaga, in the last three months of the year.

“Gucci is obviously our priority because it is our greatest asset,” Pinault said.

A Gucci sign is seen outside a shop in Paris, France, on January 27. Photo: Reuters

“The brand didn’t have its best performances lately,” he said, adding that he was determined to get it “back on track”.

The results were weighed down by China, which still had Covid-19 restrictions most of last year. The world’s second biggest economy, a major market for luxury brands, lifted its zero-Covid policy in December.