Published: 2023-06-22 ǀ Updated: 2023-07-04
Company History
Kering
Study the financial data for Kering.
Founded in 1963, Kering has its origins in the lumber trade. Today, Kering is the world's second-largest luxury company in terms of revenue, with traditional brands such as Boucheron, Gucci, Yves Saint Laurent, and Balenciaga, as well as modern designers such as Alexander McQueen. Kering has defined sustainability as one of the most important elements of its brand strategy at the corporate level - and is thus an important pioneer of social commitment and sustainability initiatives in the luxury industry.
| Founded | 1963 |
| Founder | François Pinault |
| Headquarters | 40 rue de Sèvres, Paris 7e, France |
| Key people | François-Henri Pinault (Chairman and CEO) |
| Products | Luxury goods |
| Areas |
Fashion and leather goods Watches & Jewellery Eyewear (Kering Eyewear) |
| Subsidiaries |
Fashion and leather goods Balenciaga, Gucci, Brioni, Alexander McQueen, Saint Laurent, Bottega Veneta Watches & Jewellery Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux Kering Eyewear Gucci, Cartier, Saint Laurent, Balenciaga, Bottega Veneta, Alexander McQueen, Stella McCartney, Alaïa, Courrèges, Montblanc, Brioni, Boucheron, Pomellato, McQ, Puma |
| Website | kering.com/en/ |
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1963: François Pinault founds Établissements Pinault
François Pinault founds the wood trading company Établissements Pinault in Rennes, Brittany. The first acquisitions soon follow, and the company continues to grow in the years ahead.
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1988: Initial public offering
The company Pinault S. A. is henceforth listed on the Paris Stock Exchange.
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1989: Acquisition of shares from CFAO
Pinault S.A. acquires 20% of the French distribution conglomerate CFAO, which operates mainly on the African continent. The following year, the two companies merge and Pinault becomes chairman.
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1990: Diversification into specialized retail distribution
The merger with CFAO accelerates the acquisition of other companies in the retail sector: in 1991, the French furniture retailer Conforama is acquired, followed in 1992 by the Printemps chain, which in turn owns 54% of the French mail-order company La Redoute.
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1994: Renaming of the company
To reflect its strong expansion, the company changes its name to Pinault Printemps Redoute. That same year, the company acquired French book, multimedia and electronics retailer Fnac.
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1995: Launch of the first website
The Group's first website, laredoute.fr, is launched.
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1996: Foundation of Orcanta
The company launches Orcanta, its own chain of women's underwear. fnac.com goes online as Fnac's website.
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1997: Further expansion in the retail sector
Pinault Printemps Redoute acquires Ellos, the Scandinavian mail-order leader. With Fnac Junior, the company launches its own store concept for children under 12. The following year, the company acquires Guilbert, the European leader in office supplies and equipment, 49.9% of the American home shopping giant Brylane, and creates Made in Sports, its own chain of stores for sports enthusiasts.
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1999: Transformation into a luxury group
Pinault Printemps Redoute is changing its strategy in favor of the luxury sector. This was triggered by the acquisition of 42% of the Gucci group for $3 billion, after LVMH had also acquired a 34% stake in the group earlier in the year. A two-year takeover battle ensues, which is repeatedly fought out in court. In the same year, the company also acquires the French fashion house Yves Saint Laurent, and a year later, the exclusive jeweler Boucheron.
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2000: Retail business also continues to grow
Despite efforts in luxury, Pinault Printemps Redoute buys Surcouf, a PC retailer, and opens Citadium, a new Printemps sports store.
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2001: Acquisition of Bottega Veneta
The luxury segment is further expanded with the acquisition of Italian premium leather goods manufacturer Bottega Veneta. In the same year, the company also acquires the Italian luxury fashion house Balenciaga. Pinault Printemps Redoute signs a partnership agreement with Alexander McQueen and acquires a 51% interest. Its stake in the Gucci Group increases to 53.2% with the acquisition of LVMH's shares. Gucci Group creates its own luxury division, bringing together several premium brands under one roof.
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2002: Sale of individual business units
The Group increases its stake in the Gucci Group to 54.4%. In the same year, the Group sold Guilbert Home Shopping to Staples Inc. and parts of its credit and financial services businesses in France and Scandinavia to Crédit Agricole SA (61% of Finaref) and BNP Paribas (90% of Facet).
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2003: Handover of Artemis management to François-Henri Pinault
Groupe Artemis, the family holding company that controls Pinault-Printemps-Redoute, is headed by François-Henri Pinault, son of François Pinault. While increasing its stake in the Gucci Group to 67.6%, the company sells an additional 14.5% of its shares to Finaref.
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2004: Integration of the Gucci Group into the Group
The shareholding in the Gucci Group increases to 99.4% following a takeover bid. At the same time, the remaining shares in Finaref and Rexel were sold.
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2005: Renewed name change of the company
The company changes its name back to PPR. François-Henri Pinault replaces Serge Weinberg as President and CEO of PPR and transforms the company into a global luxury group through the sale of businesses such as MobilePlanet (2005), Le Printemps and Orcanta (2006), Conforama (2011), CFAO and Fnac (2012) and the acquisition of luxury companies.
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2006: Purchase of the Balenciaga brand
Kering acquires the Balenciaga brand from Jacques Bogart S.A. In the same year, the company begins its exit from the retail sector by selling its stake in Printemps to RREEF, the real estate and infrastructure division of Deutsche Bank and the Borletti Group.
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2007: Acquisition of Puma to launch the Lifestyle portfolio
With the acquisition of Puma, PPR lays the foundation for a sports and lifestyle segment. Cobra Golf follows in 2010, Volcom in 2011.
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2008: Creation of the Kering Foundation
Pinault creates the Kering Foundation to combat violence against women by supporting NGOs and social entrepreneurs, through training programs and public awareness campaigns. The Foundation works with local partners. In parallel, Kering becomes a strategic partner of Gucci in the Chime for Change initiative, an international campaign focused on education, health and justice for women, initiated by Salma Hayek-Pinault, Frida Giannini (former CEO of Gucci) and Beyoncé Knowles.
YSL Beauté is sold to L'Oréal, which now holds the licenses for the cosmetics divisions of several Kering brands. The company also acquires a 23% stake in Girard Perregaux.
Kering Foundation fight violence against women -
2011: Expansion of the portfolio and dissolution of the Gucci Group
PPR acquires the Italian company Brioni and increases its stake in the Swiss group Sowind (owner of Girard-Perregaux and Jeanrichard) to 50.1% (both in 2011) and in the Pomellato group (Pomellato and Dodo) in 2012. The Conforama furniture chain is sold and the Gucci Group is dissolved within the Group. Since then, the previously subordinate luxury brands have become equal brands within the Group, alongside the Gucci brand.
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2012: PPR becomes Kering
PPR again changes its name to Kering, a reference to the Pinault family's home in Brittany, where kêr means "home. This is accompanied by a new corporate design. The owl logo symbolizes wisdom, protection and foresight, while the tagline represents the company's vision: "Empowering Imagination". Part of the company's strategy is to fill the positions of creative directors in the houses in a more unconventional way in the future. After his appointment, Alessandro Michele tripled Gucci's sales in five years, YSL experienced double-digit annual growth under Hedi Slimane, and Demna Gvasalia is tasked with reinventing the Spanish fashion house at Balenciaga.
In August of that year, Kering launches a joint venture with Yoox S.p.A. dedicated to e-commerce for several luxury brands. The group's long-standing flagship store, La Redoute, is spun off with other retail activities to form Redcats Group, the world's third-largest international mail-order group.
In the same year, the company commits to a four-year plan to significantly reduce its environmental impact. -
2013: Acquisition of the Chinese jewelry manufacturer Qeelin
Kering acquires Qeelin, a Chinese jewelry manufacturer founded in 2004 that translates traditional mythological symbols into modern and exclusive jewelry designs. In the same year, the company acquires the Italian jewelry manufacturers Pomellato and DoDo, two of the most innovative jewelry brands in the world. Finally, partnerships are forged with Christopher Kane and New York designer Joseph Altuzarra. The following year sees the integration of Ulysse Nardin. A joint venture with the chief designer of Kering's Bottega Veneta brand, Tomas Maier, is created to further develop the brand.
Kering acquires a majority stake in the France Croco tannery. Groupe Fnac goes public and is spun off from the Group. Exclusive sales negotiations begin for the sale of La Redoute and Relais Colis. In 2014, La Redoute is sold to the management team led by Nathalie Balla and Eric Courteille for a symbolic one euro.
The Material Innovation Lab in Novara, Italy, is dedicated to research into innovative materials and fabric sustainability. Another center for sustainable watch and jewelry design will follow in 2017. -
2015: Launch of the Kering Eyewear division
The company creates the Kering Eyewear division to coordinate the design, development and distribution of eyewear collections for Gucci, Cartier, Saint Laurent, Balenciaga, Bottega Veneta, Alexander McQueen, Stella McCartney, Alaïa, Courrèges, Montblanc, Brioni, Boucheron, Pomellato, McQ and Puma. Roberto Vedovotto, former CEO of the Safilo Group, will be entrusted with the management and development of the company.
With the publication of its first Life Cycle Assessment, a tool to measure the environmental impact of its activities, Kering aims to encourage other companies to use this approach to develop new opportunities.
The Group continues its commitment to women by launching the Women in Motion program in partnership with the Cannes Film Festival. The program highlights the contribution of women in the film industry and is now an established part of the official program.
Stella McCartney glasses -
2016: New headquarters in Paris
At 40 rue de Sèvres in Paris, the company has a new headquarters in a lavishly renovated historic hospital. The unique working environment is designed to foster creativity by combining the past with the present.
Working conditions for mothers are improved for all Group employees with maternity or adoption leave of at least 14 weeks at full pay. In 2019, the company will strengthen its parental leave policy and extend it to paternity and partner leave. -
2017: Renovation of the house Boucheron
To celebrate the 160th anniversary of the House of Boucheron, the company is embarking on a lavish renovation of 26 Place Vendôme in Paris, the jeweler's historic location. The iconic boutique is expected to reopen in 2019.
Richemont partners with Kering Eyewear to produce eyewear for Cartier, Alaïa and Montblanc.
The company's new sustainability approach aims to reduce its global environmental impact by 40% by 2025, followed by a commitment to achieve carbon neutrality in its operations and supply chains by 2019. -
2018: End of the cooperation with Thomas Maier
The development of the Thomas Maier brand, which has been underway since 2013, will end this year with the termination of the collaboration. At the same time, the brand will be completely discontinued, as the trademark rights will remain with the designer himself.
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2018: YSL relocates its headquarters
The prestigious Kering subsidiary YSL moves its headquarters to 37, rue de Bellechasse in the 7th arrondissement of Paris, near its first boutique. The site receives a double environmental certificate for heritage and sustainability. Sustainability efforts continue this year with the first use of 100% traceable organic cotton and the launch of the Kering Sustainable Innovation Award (in partnership with Plug & Play) to support start-ups focused on luxury and sustainability.
The following year, Kering becomes a pure luxury group with the sale of a majority stake in the lifestyle brands Puma and Volcom to the US marketing company Authentic Brands Group.
Kering sells its shares back to Stella McCartney, who will now work with LVMH. The company is included in the STOXX Europe 50 index. The company's sustainability activities also lead to its inclusion in the Dow Jones Sustainability Indexes and recognition in the Corporate Knights' Global 100 Index as a "Top Sustainable Textile, Apparel and Luxury Goods Corporation". -
2019: Sustainable seat in Italy
The company's new headquarters in Milan showcases intelligent sustainability, with LED lighting and rain-sensing irrigation systems. Also in Italy, in Padua, Kering Eyewear opens a 15,000-square-meter logistics center with a production capacity of 5 million pairs of glasses per year.
The company commits to strict European animal welfare standards and bans underage models from its catwalks. President Macron asked François-Henri Pinault to promote an industrial coalition for sustainability. That same year, at the G7 summit, he presented the Fashion Pact, an initiative of 32 fashion companies committed to concrete actions to reduce their environmental impact. Just one year later, it is clear that the efforts of 80 percent of these companies are beginning to bear fruit.
This year, the industry will generate $18.9 billion in sales and $5.7 billion in profits. The APAC region accounts for the largest share of sales at 34% (Western Europe 32%), with 20% growth due to the development of the Chinese market. -
2020: Sales decline
Kering generates sales of 13.1 billion euros, a decrease of 17.9% compared to the prior year. The Gucci, Saint Laurent and Bottega Veneta brands account for 84% of Group sales. However, as Gucci has experienced declining sales in recent years, new store openings and store quality will be strictly controlled in the future and the wholesale division will be downsized. Advertising campaigns, packaging and the website will also be revamped to keep up with the times.
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2021: Renunciation of fur
The company announces that starting with the Fall 2022 collection, no Kering Group company will use animal fur. The company also insists on strict compliance with animal welfare standards for other animal materials.
Between 2016 and 2021, Kering's share price increases by 352 percent. The company buys back 650,000 of its shares this year, retaining half and distributing the other half to employees. With 40.8% of the shares and 55.5% of the voting rights, François Pinault's holding company, Groupe Artemis, is the majority shareholder.
Following a $216 million investment round and the associated 5% stake in luxury online retailer Vestiaire Collectiv, as well as the acquisition of 100% of the shares in Danish luxury eyewear manufacturer Lindberg, the company is focusing primarily on the organic growth of its brands.
Kering renouncing fur -
2022: Kering Eyewear acquires Maui Jim
Kering Eyewear acquires the Hawaiian company Maui Jim. At the same time, the company announces the sale of its watch division, in particular the Girard-Perregaux and Ulysse Nardin brands.
Kering Group brands
| Brand | Acquisition | Country |
| Gucci | 1999 | Italy |
| Yves Saint Laurent | 1999 | France |
| Boucheron | 2000 | France |
| Bottega Veneta | 2001 | Italy |
| Balenciaga | 2001 | Spain |
| Alexander McQueen | 2001 | UK |
| Puma | 2007 | Germany |
| Brioni | 2011 | Italy |
| Girard-Perregaux (Former) | 2011 | Switzerland |
| JeanRichard | 2011 | Switzerland |
| Qeelin | 2012 | Hong Kong |
| Pomellato | 2012 | Italy |
| Dodo | 2012 | Italy |
| Ulysse Nardin (former) | 2014 | Switzerland |
| Lindberg | 2021 | Denmark |
| Maui Jim | 2022 | USA |