Kering has reported that net income attributable to the group fell by 17% to €2.98bn ($3.21bn) in the fiscal year 2023 (FY23), down from €3.61bn in FY22.
The company, which owns luxury brands such as Gucci, Balenciaga and Yves Saint Laurent, posted a recurring operating income of €4.7bn, a 15% decline from the €5.52bn reported in 2022.
Kering’s earnings before interest, taxes, depreciation and amortisation dropped by 9% to €6.56bn in FY23 from €7.25bn a year previously.
Revenue for the year was €19.56bn, a decrease of 4% compared with €20.35bn in FY22.
Gucci saw its 2023 revenue decrease by 6% to €9.87bn, while Yves Saint Laurent’s revenue fell to €3.17bn, a 4% decrease on a reported basis.
The company’s wholesale and other revenue declined by 11% on a comparable basis, as Kering continued to enhance the exclusivity of its distribution channels.
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In the fourth quarter of FY23, Kering’s overall revenue was down by 6% as reported and by 4% on a comparable basis.
Despite the downturn, Yves Saint Laurent experienced positive performance in Asia-Pacific and Japan, while North America and Western Europe saw declines, albeit with improving trends.
Yves Saint Laurent’s wholesale revenue also fell by 39% in the fourth quarter.
The company ended the year with a net debt of €8.5bn.
Kering chairman and CEO François-Henri Pinault commented on the results, stating: “In a trying year for the group, we strengthened our organisation and took significant steps to further enhance the visibility and exclusivity of our houses.
“We are focused on revitalising Gucci, leveraging the unique blend of craftsmanship, Italian heritage and modernity that characterises this iconic house.
In 2023, Kering completed the acquisition of a 30% shareholding in Valentino.