Kering (founded in 1963) is an international luxury group based in Paris. It owns luxury brands including Gucci, Yves Saint Laurent, Balenciaga, Alexander McQueen, Bottega Veneta, Boucheron, Brioni, as well as Puma and Volcom in its Sport & Lifestyle portfolio.
Kering has been headed by François-Henri Pinault since 2005, has been quoted on Euronext Paris since 1988, and has been a constituent of the CAC 40 index since 1995.
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History
Building a retail empire with wood
In 1962, with a loan from his family and the bank, François Pinault opened the Établissements François Pinault in Brittany (France) specialized in timber trading. The company grew organically and through successful acquisitions. In 1988, Pinault SA 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 SA 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) in 1994. To align the group's identity with its new activities, it was renamed Pinault-Printemps-Redoute in 1994.
Offloading retail assets to invest in luxury
In 1999, a major acquisition changed the course of the group's strategy. In a bold and unexpected move, Pinault-Printemps-Redoute purchased a controlling 42% stake of the Gucci group for $3 billion. Through the Gucci deal, Pinault-Printemps-Redoute also acquired the brand Yves Saint Laurent. It confirmed this new strategy with its following acquisitions, which included the French high-jewelry house Boucheron (2000), the Italian leather goods maker Bottega Veneta, and the fashion house Balenciaga (2001). In 2001, Pinault-Printemps-Redoute also signed strategic partnerships with ex-Givenchy fashion designer Alexander McQueen and with Stella McCartney.
With a new strategy for the group, Pinault-Printemps-Redoute offloaded its assets in the retail sector one after the other: Pinault Bois et Matériaux, upon which the whole group developed and grew, was acquired by the British group Wolseley in 2003.
In 2003, François Pinault handed over the helm of Artémis, the family holding that controls Pinault-Printemps-Redoute and other assets (Château Latour, Christie's...) to his son François-Henri. In 2004, Pinault-Printemps-Redoute acquired almost all of the remaining shares of the Gucci group to reach a 99,4% ownership of the Italian luxury holding. In 2005, François-Henri Pinault chose a hands-on approach to managing Pinault-Printemps-Redoute and decided to take over the position of CEO. The group officially changed its name to PPR.
The divestment of the group's retail assets continued: Le Printemps (2006), Conforama (2011), CFAO and Fnac (2012), and La Redoute (2013). In the meantime, PPR acquired the Sowind Group (owner of Swiss high-end watchmaker Girard-Perregaux) and the Italian bespoke tailor Brioni (2011), the Italian group Pomellato (Pomellato and Dodo jewelry brands), the Chinese jeweler Qeelin (2012), the fashion designer Christopher Kane, and luxury watch manufacturer Ulysse Nardin (2014).
PPR also developed a Sport & Lifestyle portfolio with the acquisition of Puma in 2007, Cobra Golf in 2010, and Volcom in 2011.
Kering, a new luxury powerhouse
On March 22, 2013, PPR changed its name to Kering in order to fully achieve the group's shift towards luxury goods. Pronounced "caring", the new name is a reference to the Pinault's region of origin, Brittany, where "Ker" 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.
Among the leaders of the luxury sector, Kering has kept its portfolio of brands dynamic by keeping these brands relevant to the market. 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. 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, quickly turning the house into a performing brand on the fashion scene.
In 2016, mainly lifted by Gucci and Yves Saint Laurent's sales, Kering's income rose 14.5% and its revenue rose 8.1%. From July 2016 to April 2017, the price of Kering's stocks rose 85%, reaching 284EUR.
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Description
Kering is organized into two sections: Luxury and Sport & Lifestyle.
The Luxury portfolio includes brands specialized in the design, the making, and the sale, of luxury products, especially in the leather-good, shoe, ready-to-wear, watches and jewelry sectors. Ninety-four percent of the group's operating income (2016) is generated by the following brands:
- Gucci
- Yves Saint Laurent
- Boucheron
- Bottega Veneta
- Balenciaga
- Stella McCartney
- Alexander McQueen
- Brioni
- Girard-Perregaux
- JeanRichard
- Qeelin
- Pomellato
- Dodo
- Christopher Kane
- Tomas Maier
- McQ
- Ulysse Nardin
The Sport & Lifestyle portfolio includes:
- Puma
- Cobra Golf
- Volcom
Commitments
Sustainability
In April 2012, Kering committed to a 4-year plan aiming 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.
In September 2013, Kering was listed on the Dow Jones Sustainability Indices world and Europe, and was recognized as an industry leader in 2014 and 2015.
Published in 2016, Kering's sustainability report showed that Kering was able to control some supply/production chains more than others: while it reached 99% on its PVC-free goal, it only reached 15% on its goal to purchase its gold from verified "fairmined gold" providers, and 64% of its goal to purchase its leather from responsible and verified sources. Carbon emissions were reduced by 11%, waste output by 16% and water usage by 19%. Six thousand supplier audits were performed. Kering then announced its new sustainability program, which targets a 40% reduction of its global environmental impact by 2025, a strategy aligned with the UN Sustainable Development Goals.
En 2015, Kering co-produced Ice and the Sky by Luc Jacquet, a documentary film about Claude Lorius, one of the first scientists to show evidence of global warming.
Kering Foundation
The Foundation is committed to defending women's dignity and rights by combating violence against women and promoting women's empowerment. Since 2009, the Foundation has initiated 47 partnerships with NGOs and supported many social projects oriented towards women's rights.
Many brands have their own philanthropic projects, which the Kering Foundation supports. Gucci, one of the Group's major brands launched its project Chime for Change, an international campaign led by actress Salma Hayek Pinault, then Frida Giannini, creative director of Gucci and Beyoncé Knowles, 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.
Governance
Board of Directors
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus - Group Managing Director
- Patricia Barbizet
- Baudouin Prot
- Laurence Boone
- Yseulys Costes
- Sophie L'Hélias
- Daniel Ricardi
- Sapna Sood
Executive Committee
- François-Henri Pinault - Chairman and CEO
- Jean-François Palus - Group Managing Director
- Jean-Marc Duplaix - CFO
- Jean-Philippe Bailly - COO
- Carlo Alberto Beretta - Chief Client and Marketing Officier
- Marie-Claire Daveu - Chief Sustainability Officer and Head of institutional affairs
- Valérie Duport - VP Communications and Image
- Béatrice Lazat - VP Human Resources
- Albert Bensoussan - CEO Watches and Jewelry
- Roberto Vedovotto - CEO Kering Eyewear
- Francesca Bellettini - CEO Saint Laurent
- Marco Bizzarri - CEO Gucci
- Bjørn Gulden - CEO Puma
- Claus-Dietrich Lahrs - CEO Bottega Veneta
Financial results
Sales and profits
Market data
- 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%
See also
- François Pinault
- François-Henri Pinault
- Artémis
- Gucci
- Yves Saint Laurent
References
External links
- Official website
Source of article : Wikipedia
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