Kering

### Subsidiaries

GucciYves Saint LaurentBoucheronBottega VenetaBalenciagaAlexander McQueenBrioniGirard-PerregauxQeelinPomellatoUlysse Nardin

**Kering** (French: [kɛːʁiŋ]) is a French-based multinational corporation specialized in luxury goods. The group owns brands such as Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Brioni and Boucheron.

The timber-trading company Pinault S.A. was founded in 1963 by François Pinault. After the company was quoted on Euronext Paris in 1988, it became the retail conglomerate Pinault-Printemps-Redoute (PPR) in 1994, and the luxury group Kering in 2013. The group is a constituent of the CAC 40 since 1995. François-Henri Pinault is President and CEO of Kering since 2005. In 2019, the group's revenue reached €15.9 billion.

## History[edit source]

### From timber trading to retail[edit source]

See also: François Pinault

In 1963, with a loan from his family and a bank, François Pinault opened the *Établissements Pinault* in Brittany (France) specialized in timber trading. The company became Pinault S.A. and grew organically and through successful acquisitions. In 1988, Pinault S.A. was listed on the Paris Stock Exchange.

In 1989, Pinault S.A. 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) in 1994. To align with its new activities, the group was renamed Pinault-Printemps-Redoute in 1994.

In 1999, Pinault-Printemps-Redoute purchased a controlling 42% stake of the Gucci group for $3 billion and 100% of Yves Saint Laurent. Those acquisitions marked the cornerstone of the group's shift towards luxury. After Gucci, Pinault-Printemps-Redoute acquired Boucheron (2000), Bottega Veneta (2001), Balenciaga (2001), and signed strategic partnerships with Alexander McQueen and Stella McCartney. In 2004, Pinault-Printemps-Redoute reached a 99.4% ownership of Gucci.

### From retail to luxury

In 2003, François Pinault handed over the helm of Artémis, the family holding company that controlled Pinault-Printemps-Redoute to his son François-Henri. In 2005, François-Henri Pinault became President and CEO of Pinault-Printemps-Redoute, succeeding to Serge Weinberg. The group officially changed its name to PPR. and kept on building a portfolio of luxury brands: The Sowind Group (owner of Girard-Perregaux) and Brioni (2011), the Pomellato Group (Pomellato and Dodo, 2012), Qeelin (2012), Christopher Kane (2013), Ulysse Nardin (2014). To further this strategy, PPR offloaded its retail assets: Le Printemps (2006), Conforama (2011), CFAO (2012), Fnac (2012), and La Redoute (2013). PPR also developed a Sport & Lifestyle portfolio with the acquisition of Puma (2007), Cobra Golf (2010), and Volcom (2011). Cobra and Volcom are since then been divested (see the respective pages for details) and Kering only holds a minority share in Puma.

On 22 March 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".

Part of Kering's strategy is to name unexpected designers at the creative direction of its brands. In December 2014, Alessandro Michele, a 12-year accessories designer at Gucci, was named its creative director. He introduced an acclaimed « sophisticated, intellectual and androgynous feel » for the Florentine fashion brand which tripled its sales in 5 years. In 2015, following Yves Saint-Laurent's year-on-year double-digit growth under the creative direction of Hedi Slimane, Kering named a new creative director, Anthony Vaccarello, to renew the brand’s props. In October 2015, Kering named Georgian-born designer Demna Gvasalia as creative director of Balenciaga to reinvent the classic Spanish couture house. In a less speculative move, Kering appointed Daniel Lee - Celine's former ready-to-wear designer - as creative designer of Bottega Veneta in June 2018.

In 2014, Kering launched Kering Eyewear. In March 2017, Richemont partnered with Kering Eyewear to produce Cartier, Alaïa, and Montblanc eyewear. In September 2019, Kering Eyewear opened a 15,000 square-meters logistics center near Padua, Italy, with an annual output capacity of five million eyewear units. In March 2018, Kering agreed to sell its shares of Stella McCartney back to its eponymous owner. Kering became a luxury pure player after the sale of Puma (2018) and Volcom (2019). After the group built up its portfolio of luxury brands, it stopped acquisitions and capitalized on its brands' organic growth. In 2019, Kering made 15,383 billion euros in revenue, +16,2% from the previous year.

### From luxury to sustainability

Since Kering became a luxury brand, the group focused its development on sustainable development for the luxury fashion industry. In April 2012, Kering committed to a 4-year plan to significantly reduce its impact on the environment. The group developed the "Environmental Profit & Loss account" (EP&L) accounting method to track its progress. In 2017, the group presented its new sustainability program which targeted a 40% reduction of its global environmental impact by 2025, a strategy aligned with the UN Sustainable Development Goals. In September 2019, Kering committed to become carbon-neutral within its operations and its supply chain.

In 2013, after opening the Material Innovation Lab, a center in Novara, Italy, specialized in innovative materials and fabric sustainability, Kering became part of the Dow Jones Sustainability Indices and was named top sustainable textile, apparel and luxury goods corporation" in the Corporate Knights’ Global 100 index in 2018

The Kering Foundation was created in 2008 to support women's rights initiatives worldwide. The Foundation works with local partners focused on women issues and gender equity. Alongside Gucci, Kering is a strategic partner of *Chime for Change*, an international campaign focused on women's education, health and justice, launched by Salma Hayek-Pinault, Frida Giannini (former CEO of Gucci), and Beyoncé. From 2012 to 2018, the Kering Foundation contributed to the International Day for the Elimination of Violence against Women with the White Ribbon campaign. In 2015, Kering became an official partner of the Festival de Cannes and launched the program Women in Motion to raise women issues in the film industry (extended to the Rencontres d'Arles photography festival in March 2019).

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. In May 2019, the group aligned with the strict European Union standards for animal welfare and banned models under 18 from its shows and photo shootings. The French President Emmanuel Macron mandated François-Henri Pinault to promote an industry coalition for sustainability. In August 2019, Kering's CEO presented the *Fashion Pact* during the 45th G7 summit, an initiative signed by 32 fashion firms committing to concrete measures to reduce their environmental impact. In October 2020, the Fashion Pact announced its one-year progress at the Copenhagen Fashion Summit, revealing that 80 percent of its members have sped up company-wide sustainability efforts to date.

In January 2021, Kering financed the renovation of the courtyard of the Palazzo Vecchio in Florence.

## Activities

### Description

Kering is an international group based in Paris (France) specialized in on luxury and fashion goods. Its portfolio includes luxury 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. Kering Eyewear (30%-owned by Richemont) produces glasses for the luxury sector.

Kering's headquarters are located in the former Hopital Laennec in the 7th arrondissement of Paris. The parent holding company of Kering is Groupe Artémis. In 2019, Kering made 15.383 billion euros in revenue, +16,2% from the previous year. The group has 30.956 employees and 1.381 stores. Its brands Gucci, Saint Laurent et Bottega Veneta generated 84% of the group's revenue. The leather goods, shoes, and ready-to-wear products represent 87% of the group's revenue.

## Governance[edit source]

### Board of Directors[edit source]

* François-Henri Pinault - Chairman and CEO
* Jean-François Palus - Group Managing Director
* Independent directors:
	+ Yseulys Costes
	+ Jean-Pierre Denis
	+ Ginevra Elkann
	+ Sophie L'Hélias
	+ Claire Lacaze
	+ Baudouin Prot
	+ Daniel Ricardi
	+ Sapna Sood
	+ Emma Watson
	+ Héloïse Temple-Boyer
	+ Tidjane Thiam

### Executive Committee[edit source]

* François-Henri Pinault - Chairman and CEO
* Jean-François Palus - Group Managing Director
* Francesca Bellettini - President and CEO Saint Laurent
* Marco Bizzarri - President and CEO Gucci
* Grégory Boutté : Chief Client and Digital Officer
* Cédric Charbit : CEO Balenciaga
* Marie-Claire Daveu - Chief Sustainability Officer and Head of Institutional Affairs
* Valérie Duport - Chief Communications and Image Officer
* Jean-Marc Duplaix - CFO
* Béatrice Lazat - VP Human Resources
* Bartolomeo Rongone - President and CEO Bottega Veneta
* Roberto Vedovotto - CEO Kering Eyewear

## Financial data[edit source]

* 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 2018, Kering joined the STOXX Europe 50 index. In November 2018, the group announced the share repurchase of 1% of its share capital.

In 2019, Italian authorities completed an investigation of back taxes and a settlement of 1.25 billion euro ($1.4 billion) was reached. The Italian investigation focused on a Swiss subsidiary of Kering from 2011 through 2017, which paid lower tax rates than it would have in Italy. In February 2019, French prosecutors opened an investigation over possible laundering of tax-fraud funds.