All the challenges of Kering in 2023

These past few months have not been easy for the French giant Kering. In addition to the scandal involving Balenciaga, a brand that has been part of the corporate group since 2001, and Alessandro Michele's withdrawal from Gucci, bought in 1999, François-Henri Pinault's group has also suffered from a great loss from the Chinese market, due to the increase in Covid cases and the strict lockdown rules imposed in the Country. In no time at all, the fortunes of brands that until months before were productive stars for Kering have been reversed, and their results will be displayed on 15th February, when the group will be obliged to display their fourth quarter and annual revenues.

In recent weeks Kering has been trying to do damage control, first by appointing Sabato de Sarno as Gucci's new creative director, and then by letting Demna give his side of the story of what happened to Balenciaga in an exclusive interview with Vogue, announcing the brand's return to the catwalk during the upcoming Paris Fashion Week. In the meantime, Kering has also inaugurated a new beauty division, perhaps in an attempt to revive evidently poor financial growth. The biggest problem Kering is facing, however, is in China, where sales have been truncated following an unexpected rise in cases of coronavirus, at a time when earnings - particularly Gucci's - were down sharply even before the new epidemic hit. It is not yet clear what plan François-Henri Pinault's team will put in place to revive their earnings conditions in China, but there is a strong possibility that the group is waiting for the discontinuation of the Zero Covid policy to motivate the Chinese population to adopt the 'revenge travel' method, thus returning to luxury stores in droves.

It has been a tough winter for the Parisian company, perhaps destined to improve following the restart of Balenciaga and Gucci, and the reopening of shops in China. The last challenge to be faced, for now, will be on 15 February, when Kering will be cornered and forced to disclose the results of these last months.