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.
|Traded as||Euronext: KER|
CAC 40 Component
|Headquarters||40 rue de Sèvres, Paris 7e, France|
|Francois-Henri Pinault |
(Chairman and CEO)
|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
|Footnotes / references|
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.
- 1 History
- 2 Description
- 3 Kering Foundation
- 4 Governance
- 5 Financial results
- 6 Awards
- 7 See also
- 8 References
- 9 External links
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.
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 and also acquired the brand Yves Saint Laurent. 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. In 2004, Pinault-Printemps-Redoute reached a 99.4% ownership of the Gucci group. 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.
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, 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, 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, the Italian group Pomellato (Pomellato and Dodo jewelry brands), the Chinese jeweler Qeelin in 2012, the fashion designer Christopher Kane and luxury watch manufacturer Ulysse Nardin in 2014.
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.
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. From 2014 to 2017, Gucci's sales doubled from 3,497.2 million euros to 6,211.2 million euros.
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. In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga. 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).
In March 2018, Kering announced it has agreed to sell its shares of Stella McCartney to its eponymous owner. In April 2018, Kering announced its intention to sell the sportswear company Volcom. In May 2018, Kering also offloaded its shares of Puma, retaining a minor 15.7%, thus becoming a pure player in luxury. In November 2018, the group announced the end of its collaboration with Yoox to open its proprietary ecommerce platform by 2020,  and launched a partnership with Apple to create new instore mobile applications for the luxury sector. The group also announced its intention to branch into high-end jewelry by mid-2019. In April 2019, Kering sold Volcom to the Authentic Brands Group  and opened the Torre Kering, the group's new Italian offices in a 11,000 m² building in Milan.
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. After publishing its 2016 sustainability report, 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. 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.
In February 2018, in partnership with the London College of Fashion, Kering launched the first online class (Mooc) in fashion and sustainability. In October 2018, Kering started to implement the use of the first 100% traceable organic cotton. 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. Along with a dozen of fashion brands, Kering signed a United Nations (UN) charter in December 2018 pledging to become carbon-neutral by 2050, 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. In May 2019, as the group was releasing guidelines for dealing with animal welfare in the fashion industry and banning models under 18 to represent adults in its shows, the French President Emmanuel Macron appointed François-Henri Pinault to set new climate standards for the fashion and retail industry. The "G7 Fashion Pact" was signed 3 months later by 32 global fashion corporations, right before being discussed at the 45th G7 summit.
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:
|Brand||With Kering since||Country|
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.
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. The 2018 campaign focused on gender-based cyberbullying. In 2019 ,for its 10-year anniversary, the annual budget of the Foundation was doubled to $2 million.
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. The previous winners were:
- 2015: Jane Fonda, Megan Ellison
- 2016: Geena Davis, Susan Sarandon
- 2017: Isabelle Huppert, Maysaloun Hamoud (Young Talents Award)
- 2018: Patty Jenkins
- 2019: Gong Li
Board of DirectorsEdit
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus - Group Managing Director
- Héloïse Temple-Boyer - Vice-president of the board
- 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
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus - Group Managing Director
- Francesca Bellettini - President and CEO of Saint Laurent
- Albert Bensoussan - CEO Luxury Watches and Jewelry
- Marco Bizzarri - CEO Gucci
- Grégory Boutté : Chief Client and Digital Officer
- Marie-Claire Daveu - Chief Sustainability Officer and Head of institutional affairs
- Jean-Marc Duplaix - CFO
- Valérie Duport - Chief Communications and Image Officer
- Claus-Dietrich Lahrs - President and CEO Bottega Veneta
- Béatrice Lazat - VP Human Resources
- Roberto Vedovotto - CEO Kering Eyewear
|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|
|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%
- 2018:"Most sustainable textile, apparel and luxury goods corporation" in the Corporate Knights’ Global 100 index during the World Economic Forum in Davos
- 2018: "50 most sustainable companies in the world" at the SEAL Business Sustainability Awards.
- 2014, 2015: "Industry leader" of the Dow Jones Sustainability Indices 
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