Sustainability

New financial and strategic initiatives for Kering

Eva Morletto

By Eva Morletto22 février 2023

Several major financial and strategic initiatives are in the works at Kering. Gucci, the luxury group's flagship, is launching its first major project in Italy dedicated to the circular economy endorsed by the group. The house has set up and coordinated a first hub in Tuscany to reduce the environmental impact of production.

The ArtLab is a leather goods and footwear laboratory used by Gucci as a center for industrial craftsmanship and experimentation (Gucci Equilibrium)

The initial investment for "Circular Hub" amounts to approximately 15 million euros and has a specific objective: to accelerate the production model transformation in the fashion sector according to the rules of eco-responsibility. The initiative wants to take place in compliance with the directives on the circular economy issued by the European Union and the targets established for 2030 on reducing harmful emissions. The project will be based on creating a platform dedicated to innovation in order to develop solutions and projects that are consistent with the principles of the circular economy and the principles of the luxury market (quality of materials and product finishes, excellence of the workforce). By involving the whole industry and the entire production chain, from the choice of raw materials through the design of pieces, to the optimization of logistical processes, the program aims to recycle and use off-cuts of fabrics and waste for optimized exploitation of recycled materials, and to work on new technologies while perfecting the traceability of products.

The “Circular Hub” aims to accelerate the circular transformation of the Gucci brand. The brand intends to use the hub as a concrete tool to inspire and shape the fashion world of tomorrow. (Kering)

Gucci's Italian operations employ approximately 700 direct suppliers and 3,500 subcontractors. The brand intends to use the hub as a concrete tool to inspire and shape the fashion world of tomorrow; the patents and new technologies developed will then be made available to other companies. The hub's headquarters will be in the ArtLab (idea incubator) in Scandicci. They will collaborate with researchers at the Kering Material Innovation Lab in Milan.

From a financial point of view, Kering is moving the lines with a bond issue corresponding to a total amount of 1.5 billion euros. The operation was decided to facilitate the active management of the Group's liquidity by improving financial flexibility and facilitating the possibility of debt refinancing. Despite the excellent 2022 results posted by Kering for Gucci, the fourth quarter of 2022 had ended negatively: a revenue loss of -14%, heavily influenced by health restrictions in China. The group, therefore, intends to invest in its flagship brand and give it new momentum through innovative projects. The reception from bond investors was extremely positive, confirming the group's financial strength and the positive return of the markets. Kering's long-term debt has been rated "A" by Standard & Poor's.

Partager l'article

Continuez votre lecture

Valentino releases the second edition of its Valentino Vintage project
Business

Valentino releases the second edition of its Valentino Vintage project

Luxury brands are multiplying their efforts to show their ethical commitment and move towards a more responsible purchasing policy. Valentino is launching the second edition of its Valentino Vintage project dedicated to vintage pieces, along with partnerships with fashion and design schools and the opening of three new vintage boutiques.

By Eva Morletto

Kering announces a 15% increase in sales for 2022
Luxury Figures

Kering announces a 15% increase in sales for 2022

Despite a still unstable international economic situation, Kering announced today its 2022 results and the numbers are remarkable: the luxury group posted global sales for 20 billion and 351 million euros, a positive jump of +15% in reported figures compared to the previous year’s results.

By Eva Morletto

S'inscrire

Newsletter

Soyez prévenu·e des dernières publications et analyses.

    Conçu par Antistatique