The group A crossed the 20.4 billion euro sales mark in 2022, but its CEO recognizes its disappointment.
by Juliette Garnier
François-Henri Pinault promises to do better, at Gucci as with Balenciaga. The CEO of Kering engaged in a MEA CULPA during the presentation of the group’s annual results, Wednesday, February 15, in Paris. In 2022, its sales increased by 9 %, on a comparable perimeter, reaching 20.4 billion euros, and its operating profit is up 11 %, to 5.6 billion euros. However, marked by a reduction in sales of 7 % in the last quarter, the exercise 2022 was not at the “height of the group’s expectations and potential,” said the leader. Its performances are well below those of LVMH, a group whose fashion and leather goods sales jumped 20 % in 2022.
Because Gucci’s activity, the biggest of Kering brands, only increased by 1 % in one year, at a comparable exchange rate, to amount to 10.5 billion euros. As for that of Balanciaga, it was “penalized” in the fourth quarter of 2022, following the publication of a appalling advertising campaign featuring children and objects under the sadomasochistic culture, including nails and harnesses on a teddy bear. His visuals were intended for a campaign in the spring of 2023 for the brand’s accessories, of which Demna Gvasalia has been carrying out the artistic direction since 2015. The latter has not been thanked, nor the director general of the brand, Cédric Charbit.
“I was asked why heads had not fallen. It is not the style of Kering. We are entitled to error in the group,” said Mr. Pinault, before detailing The internal “diagnosis”, the audit measures implemented, the monitoring procedures and the rehabilitation campaign of Mr. Gemna company, in particular in the United States, when publication of a Long interview of the Creator in the American edition of Vogue, February 9.
He who now prefers to be called Demna admits his “big mistake”. “We should not have staged children in images including objects that had nothing to do and who were inappropriate for them. No one, including me, has raised the question of the inappropriate character of these objects “, he observes there.
seduc a more wealthy clientele
Kering’s CEO admits that there is now “a lot of work to do to restore the image” of Balenciaga, especially in Anglo-Saxon countries. The mark that Cristobal Balenciaga, former of the Court of Spain, had founded in 1917 is a heavyweight. His large black sneakers, plastic hooves and other hooded sweatshirts that Demna has allowed him to exceed the billion euros in turnover in 2019.
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