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Kering S.A. (French: [kɛːʁiŋ]) is a French international luxury group based in Paris, France, and specialized in luxury goods. The luxury brands owned by the group include Gucci, Yves Saint Laurent, Balenciaga, Alexander McQueen, Bottega Veneta, Boucheron, Brioni and Pomellato.

Kering S.A.
Formerly
Pinault S.A.
Pinault-Printemps-Redoute
PPR
Société Anonyme
Traded asEuronextKER
CAC 40 Component
ISINFR0000121485 Edit this on Wikidata
IndustryLuxury
Founded1963; 56 years ago (1963)
FounderFrançois Pinault
Headquarters40 rue de Sèvres, Paris 7e, France
Key people
Francois-Henri Pinault
(Chairman and CEO)
ProductsLuxury goods
Revenue€13.665 billion (2018)
€3.944 billion (2018)
€3.715 billion (2018)
Total assets€21.367 billion (2018)
Total equity€10.062 billion (2018)
Number of employees
30,595 (2018)
Subsidiaries
Websitekering.com
Footnotes / references
Annual results

The company was founded in 1963 by François Pinault. It was quoted on Euronext Paris in 1988 and has been a constituent of the CAC 40 index since 1995. François-Henri Pinault is Chairman and CEO of the group since 2005.

HistoryEdit

Building a retail empire with woodEdit

In 1963, with a loan from his family and a bank, François Pinault opened the Établissements Pinault in Brittany (France) and specialized in timber trading. The company grew organically and through successful acquisitions. In 1988, Pinault S.A. was listed on the Paris Stock Exchange, multiplying the group’s financial power.[1]

In 1989, it purchased 20% of CFAO, a French distribution conglomerate active throughout Africa. In 1990, Pinault S.A. and CFAO merged, and François Pinault became head of the newly formed group. This accelerated its acquisitions in the retail sector: Conforama (French furniture retailer) in 1991, Printemps (department stores in Paris) in 1992, which also owned 54% of La Redoute (French mail-order shopping retailer), and Fnac (French bookstore, multimedia and electronics retailer) since 1994, the year the group was renamed Pinault-Printemps-Redoute (PPR).

Offloading retail assets to invest in luxuryEdit

In 1999, Pinault-Printemps-Redoute purchased a controlling 42% stake of the Gucci group for $3 billion[2] and also acquired the brand Yves Saint Laurent.[3][4] The group's following acquisitions confirmed its shift towards luxury: the French high-jewelry house Boucheron in 2000, the Italian leather goods maker Bottega Veneta and the fashion house Balenciaga in 2001. That same year, Pinault-Printemps-Redoute signed strategic partnerships with the fashion designers Alexander McQueen and Stella McCartney.[5] In 2004, Pinault-Printemps-Redoute reached a 99.4% ownership of the Gucci group.[6] On the other end, the group offloaded its assets in the retail sector and Pinault Bois et Matériaux, the core of the group's wood business, was sold in 2003.[7]

In 2003, François Pinault handed over the helm of Artémis, the family holding company that controlled Pinault-Printemps-Redoute and other assets (Château Latour, Christie’s, etc.), to his son François-Henri, who became CEO of Pinault-Printemps-Redoute in 2005,[8] the year the group officially changed its name to the acronym PPR.

The divestment of the group’s retail assets continued: Le Printemps in 2006,[9] Conforama in 2011, CFAO and Fnac in 2012, and La Redoute in 2013. The group acquired the Sowind Group (owner of Swiss high-end watchmaker Girard-Perregaux) and the Italian bespoke tailor Brioni in 2011,[10] the Italian group Pomellato (Pomellato and Dodo jewelry brands),[11] the Chinese jeweler Qeelin in 2012,[12] the fashion designer Christopher Kane[13] and luxury watch manufacturer Ulysse Nardin in 2014.[14]

PPR also developed a Sport & Lifestyle portfolio with the acquisition of Puma in 2007,[8] Cobra Golf in 2010,[15] and Volcom in 2011.[16]

Kering, a new luxury companyEdit

On March 22, 2013, PPR changed its name to Kering to fully achieve the group’s shift towards luxury. Pronounced [kɛːʁiŋ], to sound like the English word "caring", the new name is a reference to the Pinault family’s region of origin, Brittany, where kêr means "home". The new logo has an owl as its emblem, a bird that can rotate its head 270 degrees, giving it extraordinary vision, and François Pinault’s favorite animal.[17][18]

In December 2014, Alessandro Michele, an unknown accessories designer, was named creative director of Gucci, and quickly revitalized the brand’s creativity, fashion relevance, and profitability.[19][20] From 2014 to 2017, Gucci's sales doubled from 3,497.2 million euros to 6,211.2 million euros.[21]

In 2015, following Hedi Slimane’s four-year success at the creative helm of Yves Saint Laurent, Kering named a new creative director, Anthony Vaccarello, to pursue the evolution of the brand while maintaining its growth pace.[22] In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga.[23] In 2013, the group took its eyewear activities in-house and launched Kering Eyewear. In March 2017, Richemont acquired 30% of Kering Eyewear and allowed Kering to acquire Cartier's eyewear plant in Sucy-en-Brie (France).[24]

In March 2018, Kering announced it has agreed to sell its shares of Stella McCartney to its eponymous owner.[25] In April 2018, Kering announced its intention to sell the sportswear company Volcom.[26] In May 2018, Kering also offloaded its shares of Puma, retaining a minor 15.7%, thus becoming a pure player in luxury.[27] In November 2018, the group announced the end of its collaboration with Yoox to open its proprietary ecommerce platform by 2020, [28] and launched a partnership with Apple to create new instore mobile applications for the luxury sector.[29][30] The group also announced its intention to branch into high-end jewelry by mid-2019.[31] In April 2019, Kering sold Volcom to the Authentic Brands Group [32] and opened the Torre Kering, the group's new Italian offices in a 11,000 m² building in Milan.[33]

Investments in sustainabilityEdit

In April 2012, Kering committed to a 4-year plan to significantly reduce its impact on the environment. The group defined a set of quantifiable targets covering both environmental and social issues, and developed the Environmental Profit & Loss account (E P&L) to measure its progress.[34] After publishing its 2016 sustainability report,[34] Kering announced its new sustainability program, targeting a 40% reduction of its global environmental impact by 2025, a strategy aligned with the UN Sustainable Development Goals.[35][36] In January 2017, Kering was approved by the Science Based Target (formed by the Carbon Disclosure Project, the UN Global Compact, the World Resources Institute, the WWF) the first luxury company (and first French company) to create science-based goals around reducing carbon footprint.[37]

In February 2018, in partnership with the London College of Fashion, Kering launched the first online class (Mooc) in fashion and sustainability.[38] In October 2018, Kering started to implement the use of the first 100% traceable organic cotton.[39] In December 2018, with Plug and Play, Kering launched the Kering Sustainable Innovation Award to reward and invest in startups focused on sustainability and luxury.[40] Along with a dozen of fashion brands, Kering signed a United Nations (UN) charter in December 2018 pledging to become carbon-neutral by 2050,[41] and launched, with The Savory Institute, the first "regenerative sourcing" standard for fashion suppliers to measure the regenerative potential of raw materials and finished products.[42] In May 2019, as the group was releasing guidelines for dealing with animal welfare in the fashion industry[43] and banning models under 18 to represent adults in its shows,[44] the French President Emmanuel Macron appointed François-Henri Pinault to set new climate standards for the fashion and retail industry.[45] The "G7 Fashion Pact" was signed 3 months later by 32 global fashion corporations, right before being discussed at the 45th G7 summit.[46]

DescriptionEdit

Kering is an international luxury goods group based in Paris, France. Its portfolio includes brands specialized in the design, the making and the sale of fine products, especially in the leather-goods, shoes, ready-to-wear, watches and jewelry sectors:[47]

Brand With Kering since Country
Gucci 1999 Italy
Saint Laurent 1999 France
Boucheron 2000 France
Bottega Veneta 2001 Italy
Balenciaga 2001 Spain
Alexander McQueen 2001 UK
Brioni 2011 Italy
Girard-Perregaux 2011 Switzerland
JeanRichard 2011 Switzerland
Qeelin 2012 France
Pomellato 2012 Italy
Dodo 2012 Italy
Tomas Maier 2013 Germany
Christopher Kane 2014 UK
Ulysse Nardin 2014 Switzerland


Kering FoundationEdit

The Kering Foundation is committed to defending women’s dignity and rights by combating violence against women and promoting women’s empowerment. Since 2009, the Foundation initiated 47 partnerships with NGOs and supported many social projects oriented towards women’s rights.

Many brands have their own philanthropic projects with the support of the Kering Foundation. Gucci launched its project Chime for Change, an international campaign to raise funds for women’s emancipation, focusing on education, health and justice.[48]

Every year since 2012, the Kering Foundation has contributed to the International Day for the Elimination of Violence against Women with the White Ribbon for Women campaign.[49] The 2018 campaign focused on gender-based cyberbullying.[50] In 2019 ,for its 10-year anniversary, the annual budget of the Foundation was doubled to $2 million.[51]

Women In Motion AwardsEdit

In 2015, Kering became an official partner of the Cannes Film Festival and launched Women in Motion to highlight the contribution of women to the film industry, in front and behind the camera. The program is based on talks where personalities share their recommendations for the advancement of women’s representation in the industry. The Women in Motion Awards are awarded annually to a person who embodies the role of women in the film industry, and another to a promising name in cinema.[52] The previous winners were:

In March 2019, the Women in Motion Awards was expanded to the Rencontres d'Arles photography festival.[56] In May 2019, the Cannes Partnership was renewed for five additional years.[57]

GovernanceEdit

Board of DirectorsEdit

  • François-Henri Pinault - Chairman and CEO
  • Jean-François Palus - Group Managing Director
  • Administrators:
    • Héloïse Temple-Boyer - Vice-president of the board[58]
    • Laurence Boone - Independent director
    • Sophie Bouchillou - Director representing employees
    • Yseulys Costes - Independent director
    • Jean-Pierre Denis - Independent director
    • Sophie L'Hélias - Independent director
    • Baudouin Prot - Director
    • Daniel Ricardi - Independent director
    • Sapna Sood - Independent director
    • Ginevra Elkann - nominated, submission pending[59][60]

Executive CommitteeEdit

Financial resultsEdit

ResultsEdit

Financial data in euro millions
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sales 17 931 17 761 20 201 16 525 11 008 12 227 9 736 9 748 10 037 11 584 12 385 15 478 13 665.2
EBITDA 1 540 2 096 2 140 1 790 1 649 1 911 2 067 1 750 1 647 1 886 2 948 3 943.8
Net results 680 1 058 924 985 965 986 1 048 50 528.9 696 814 1 786 3 714.9
Net debt 3 461 6 121 5 510 4 367 4 000 3 395 2 491 3 443 4 679 4 371 3 049

Market dataEdit

Years 2007 2008 2009 2010 2011 2012 2016 2017 2018
Number of shares (in millions) 128 128.4 126.5 126.8 127 126.2 126.2 126.3 126.3
Market capitalizations (in millions of Euros) 14089 5897 10 661 15 093 14 034 17 764 26,935 49 628 63,203
Number of daily transactions 692 022 1 116 420 701 105 453 415 385 265 317 960
  • Date of IPO: 25 October 1988, Second Marché
  • Shares listed on the Bourse de Paris
  • Member of the CAC 40 index since 9 February 1995
  • Nominal value = euro
  • Main shareholders: Artémis 40.8%

In September 2013, Kering became part of the Dow Jones Sustainability Indices world and Europe..[61]

In September 2018, Kering joined the STOXX Europe 50 index.[62] In November 2018, the group announced the share repurchase of 1% of its share capital.[63]

AwardsEdit

  • 2018:"Most sustainable textile, apparel and luxury goods corporation" in the Corporate Knights’ Global 100 index during the World Economic Forum in Davos[64][65]
  • 2018: "50 most sustainable companies in the world" at the SEAL Business Sustainability Awards.[66]
  • 2014, 2015: "Industry leader" of the Dow Jones Sustainability Indices [61]

See alsoEdit

ReferencesEdit

  1. ^ Staff, Guardian (1999-04-03). "From timber merchant to corporate axeman". The Guardian. ISSN 0261-3077. Retrieved 2019-08-25.
  2. ^ "Gucci fades on court ruling". Cnn.com. 27 May 1999. Retrieved 24 July 2017.
  3. ^ "Gucci Group Agrees to Sell 40% Stake to French Retailer". Latimes.com. 20 March 1999. Retrieved 24 July 2017.
  4. ^ Sri Ramakrishnan (16 November 1999). "Gucci to Buy Parent Of Yves Saint Laurent". Washingtonpost.com. Retrieved 24 July 2017.
  5. ^ McNeil, Peter; Riello, Giorgio (19 May 2016). Luxury: A Rich History. Oxford University Press. p. 256. ISBN 9780191640278.
  6. ^ Suzanne Kapner (23 March 2004). "PPR moves to buy last 30% of Gucci Group". Nypost.com. Retrieved 24 July 2017.
  7. ^ Joanne Wallen (24 April 2003). "Ooh la la, Wolseley gets heavy in France". Citywire.co.uk. Retrieved 24 July 2017.
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  49. ^ Josh Lee (18 November 2016). "Why you should support the White Ribbon campaign". Gq-magazine.co.uk. Retrieved 24 July 2017.
  50. ^ Eleonor Davies (16 November 2018). "Join GQ in taking a stand against cyberbullying". Gq-mqgqzine.co.uk. Retrieved 8 January 2019.
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  53. ^ "Kering & The Festival De Cannes Will Present The 2017 Women in Motion Award to Isabelle Huppert". Ikon London Magazine. 5 May 2017. Retrieved 23 February 2018.
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  56. ^ Diderich, Joelle; Diderich, Joelle (2019-03-13). "Kering Partners With Rencontres d'Arles Photography Festival". WWD. Retrieved 2019-04-10.
  57. ^ Spencer, Mimosa; Spencer, Mimosa (2019-05-07). "Kering, Cannes Film Festival Renew Women in Motion Program". WWD. Retrieved 2019-08-25.
  58. ^ Prachi Singh (18 December 2018). "Héloïse Temple-Boyer replaces Patricia Barbizet as board director at Kering". Fashionunited.uk. Retrieved 8 January 2019.
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  66. ^ "Most Sustainable Companies Honored At 2018 SEAL Awards". SEAL Awards. 2018-11-13. Retrieved 2018-12-13.

External linksEdit