LVMH annual reports. Of course, this geographical split varies across divisions and brands.
| France | 9% |
|---|---|
| Rest of Europe | 19% |
| America | 24% |
| Japan | 7% |
| Rest of Asia | 30% |
| Other markets | 11% |
| Total | 100% |
Kering. This group was created in 1999 by the purchase by PPR of a minority interest in Gucci and the immediate purchase of the YSL fashion and YSL beauty group. Since then, the group has purchased many other brands, including Bottega Veneta, Boucheron, and Balenciaga, and is one of the few groups that has grown by purchasing existing brands and by developing its own from scratch. This latter category includes, for example, Alexander McQueen.
The company name was changed to Kering in 2013. Table 2.10 summarizes the existing sales and operating profit data.
Gucci and Saint Laurent have outstanding performances for the past five years. The case of Bottega Veneta is quite interesting: it was at the same sales level as Saint Laurent in 2005 but grew extremely fast until 2013 when Saint Laurent was doing very poorly. Then Saint Laurent woke up and did extremely well, and Bottega Veneta was stuck with decreasing volume and profitability. It may have woken up now, but we still have to wait to find out.
Table 2.10 Kering Historical Sales and Results (€ million)
Source: PPR annual reports.
| Sales | Operating Profit | ||||||
|---|---|---|---|---|---|---|---|
| 2019 | 2015 | 2010 | 2005 | 2019 | 2009 | 2008 | |
| Gucci | 9,628 | 3,898 | 2,266 | 1,807 | 3926 | 618 | 625 |
| Saint Laurent | 2,049 | 974 | 237 | 162 | 552 | –10 | 0 |
| Bottega Veneta | 1,168 | 1,286 | 402 | 160 | 207 | 92 | 101 |
| All others Unallocated | 2,537 | 1,707 | 484 | 907 | 306 (213) | –75 | 5 |
| Total | 15,383 | 7,865 | 3,389 | 3,036 | 4,778 | 625 | 731 |
Richemont. The Compagnie Financière Richemont, based in Geneva, with sales of €13.9 billion was, for many years, the second major operator in the luxury fashion, jewelry, and watch businesses. But probably because of difficulties in the sales of watches, and little involvement in the fashion business, it has developed slower than its competitors in the past 5 years (see Table 2.11). In 2019, it integrated and consolidated the two online distribution systems: NAP (Net à Porter.com) and Y (now called YNAP).
The company's results by product lines are given in Table 2.12.
Table 2.11 Richemont Historical Sales and Profit (€ million)
Source: Richemont annual reports.
| Sales | Operating Profit | Net Profit | |
|---|---|---|---|
| 2019 2018 2017 2015 2013 | 13,989 10,979 10,647 10,410 10,150 | 1,943 1,844 1,764 1,339 2,426 | 2,787 1,221 1,210 2,387 2,005 |
Table 2.12 Richemont Performance by Product Lines, 2005–2019 (€ million)
Source: Richemont annual reports.
| Sales | Operating Profit | ||||
|---|---|---|---|---|---|
| 2019 | 2015 | 2010 | 2005 | 2019 | |
| Jewelry houses | 7,083 | 5,168 | 2,688 | 844 | 2,229 |
| Specialty watches | 2,980 | 3,325 | 1,437 | 1,750 | 378 |
| Online distribution | 2,105 | N.A. | (100) | ||
| Writing instruments | 551 | 297 | |||
| Leather and accessories | 584 | 780 |
