Kering company

Kering PRESENTATION

Key dates

Kering's Commitment to sustainability and Etical Practices

Kering announced its intention to become a fully sustainable company and set ambitious environmental and social targets for it brands.

Kering Eye-Wear

The Group will manage the design, development, and distribution of Eyewear collections for many brands

2015

2021

2015

Environmental Profit & Loss account

To measure in monetary terms the environmental impact of the Group’s activities

Kering is a French multinational luxury group that owns a variety of high-end fashion and luxury brands. Here are some key dates in the history of Kering.

Key dates

Creation of Pinault-Printemps-Redoute

Founded by François Pinault. Initially as a timber and building materials company.

PPR acquired 42 % of Gucci, 100% Yves Saint Laurent and Boucheron

Intention to invest in the world of luxury and haute couture.

2013

1999

1963

1988

PPR changes its name to Kering.

Pinault's IPO

The Pinault Group is now listed on the Paris Stock Exchange.

Kering adopts a new visual identity embodied in a new logo – an owl, a symbol of wisdom, protection, and foresight – and a signature that conveys its approach: Empowering Imagination.

SWOT ANALYSIS

Strengths, Weaknesses, Opportunities and Threats

Strengths

Weaknesses

Opportunities

Threats

• Renowned brands
• Strong Brands Portfolio

• Profitable Growth
• Commitment to Sustainability

• Wide Geographic distribution
• Family business

• Dependance on its flagship house GUCCI

• Group's results are highly concentrated in Western Europe
• High production costs

• Various Partnership and acquisitions
• Digital Transformation
• Sustainability Innovation

• Counterfeit products
• Competition
• Rising labor and raw material

• Supply Chain Disruptions

Porter's Forces

Porter's Five Forces is a framework used to analyze the competitive environment of a company. Here are the five forces applied to Kering

Bargaining Power of Buyers

Threat of Substitutes

The luxury market is based on rarity and heritage, which considerably reduces customers' bargaining power.

The products sold are wanted for their symbolism and rarity, the distinctive sign they bring when used. The group must therefore evolve and innovate its digital platform to keep its exclusivity intact.

Threat of New Entrants

Rivalry Among Existing Competitors

Bargaining Power of Suppliers

The Treat is always there because of the evolving style and increases in demand. The cost of entry into the industry is high, and the profit margin is more than the investment, which paves the way for the new entrant.

The luxury goods industry is a market where suppliers have considerable bargaining power, as the quality of the product, the materials used in its manufacture and its rarity all favor and justify high price.

Europe is home to several major groups in the fashion industry. The industry has grown steadily over the past two decades

Financial Analysis

INCOME STATEMENT

The company's net income increased by more than 68% between 2020 and 2022.

These statistics show that in 2020, sales were 13 billion, while in 2022 they will exceed 20 billion, representing an increase of over 55%.

BALANCE SHEET AND MORE DETAILS

key ratioS

DEBT RATIO

LIQUIDITY RATIO

Current Assets / Current liabilities

• 2021 = 1,36
• 2022 = 1,30

Kering Company is solvent. The Group has a very solid financial structure, and on April 22, 2022, Standard & Poors upgraded Kering's long-term rating to "A" with a "stable" outlook.

Total debt/Total Assets

• 2020 = 51,79%
• 2021 = 33,99%
• 2022 = 50,99 %

Kering debt level is very high.

STOCK PRICE EVOLUTION

CONCLUSION

Summary of key points about the Kering Group

• Kering is an international luxury company that has achieved remarkable growth due to effective management and a portfolio of renowned brands.

• The group owns iconic brands such as Gucci, Saint Laurent, and Balenciaga, solidifying its position in the fashion and luxury industry.

• Kering is notable for its commitment to sustainability and corporate social responsibility, with initiatives aimed at reducing its environmental footprint.

• Despite market challenges and uncertainties, Kering must remain adaptable to ensure future success.

• The company aims for long-term profitable growth, high cash flow generation, and strong returns on invested capital.

• Kering also seeks to affirm its status among the most influential groups in the luxury goods industry.

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