Kering Sa · EURONEXT:KER
Kering Sa — Investor Day (June 2022)
40 slides from Kering Sa's investor day presentation, Jun 9, 2022
Slide 1: Gucci Capital Markets Day
GUCCI CAPITAL MARKETS DAY JUNE 9, 2022
Slide 2: Disclaimer
CAPITAL MARKETS DAY – JUNE 9, 2022 This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction. Certain information contained in this presentation may include projections and forecasts or other forward-looking statements. They are n
Slide 3: Agenda
CAPITAL MARKETS DAY – JUNE 9, 2022 ENVISIONING GUCCI: BUSINESS STRATEGY UPDATE 4-26 2015 – 2019: THE REINVENTION 5-8 2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS 9-12 2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP 13-26 FOCUS ON THE AMERICAS 27-37 3
Slide 4: Gucci history timeline 1921 to 2020
CAPITAL MARKETS DAY – JUNE 9, 2022 1921 – 1940s 1950s – 1970s 1990s – 2000s 2000s – 2010s 2015 - 2019 2020 A DREAM BORN THE JETSET FASHION AUTHORITY THE THE REINVENTION SUSTAINABLE IN FLORENCE & OVERT SEXUALITY CONSOLIDATION ELEVATION 4
Slide 5: Envisioning Gucci: Business Strategy Update
CAPITAL MARKETS DAY – JUNE 9, 2022 ENVISIONING GUCCI: BUSINESS STRATEGY UPDATE 2015 – 2019: THE REINVENTION 2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS 2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP FOCUS ON THE AMERICAS 5
Slide 6: Putting creativity back at its core, Gucci regained its position as fashion authority
2015 – 2019: THE REINVENTION Putting creativity back at its core, Gucci regained its position as the world’s leading fashion authority • CREATIVITY AS KEY GROWTH DRIVER • ATTRACTING NEW CLIENTS WITH NEW AESTHETIC • FASHION SHOWS ESTABLISHING NEW BRAND IMAGE • INTRODUCING YOUNG MILLENNIALS AND GEN Z
Slide 7: The reinvention was expanded to all customer touchpoints
2015 – 2019: THE REINVENTION The reinvention was gradually expanded to all customer touchpoints • COMPREHENSIVE NEW OFFER • INTRODUCTION OF NEW STORE CONCEPT • INNOVATIVE CREATIVE COLLABORATIONS • CO-ED GENDER FLUID FASHION SHOWS • ICONIC GG LOGO REINVIGORATED • INVESTMENTS ON RETAIL EXCELLENCE • AU
Slide 8: Revenue evolution 2015-2019 and key growth drivers
2015 – 2019: THE REINVENTION Supported by redesigned production and supply chain REVENUE EVOLUTION 2015 - 2019 KEY GROWTH DRIVERS € Billion and % YoY growth +25% CAGR over four years (with stable network) was driven by: SALES MIX EVOLUTION CLIENT BASE EVOLUTION +16% 9.6 35% +33% 30% 30% 8.3 HIGH +18
Slide 9: 2020-2021: The Next Chapter
CAPITAL MARKETS DAY – JUNE 9, 2022 ENVISIONING GUCCI: BUSINESS STRATEGY UPDATE 2015 – 2019: THE REINVENTION 2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS 2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP FOCUS ON THE AMERICAS 9
Slide 10: Pandemic hit as Gucci was initiating a new stage in its elevation strategy
2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS In early 2020, the pandemic hit just as Gucci was initiating a new stage in its elevation strategy DISRUPTED SUPPLY CHAIN GROWING DESIRE FOR MORE LUXURY SPENDING REDIRECTED GENDER BALANCE SHIFTS WITH LOCALS FUEL GROWTH TIMELESS PRODUCTS FROM TRA
Slide 11: Focusing on four key areas
2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS Focusing on four key areas INCREASE CONTROL STRENGTHEN REINFORCE ACCELERATE OMNICHANNEL OVER DISTRIBUTION FOCUS ON LOCALS HIGH-END OFFER • Elevate direct store network • Invest in client activations • Launch High-Jewelry • Create enhanced and se
Slide 12: Ambitions set in 2018 were achieved despite disruption
2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS Despite the disruption caused by the pandemic, the ambitions set in 2018 were achieved REVENUE SALES DENSITY EBIT ~€ 10 BN €45K/SQM 40%+ ACHIEVED ACHIEVED IN 2021 ACHIEVED IN 2021 PRE-PANDEMIC Today, indicators are all trending positively in thi
Slide 13: 2022 & Beyond: The Path to Sustainable Leadership
CAPITAL MARKETS DAY – JUNE 9, 2022 ENVISIONING GUCCI: BUSINESS STRATEGY UPDATE 2015 – 2019: THE REINVENTION 2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS 2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP FOCUS ON THE AMERICAS 13
Slide 14: Ambition by products, genders, generations, markets, channels
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP PRODUCTS GENDERS GENERATIONS* MARKETS CHANNELS GEN Z ROW WS & OTHER BABY BOOMERS JAPAN W. OTHER EUROPE E-COMM YOUNG 2021 RTW MEN MILL GEN X G. CHINA N. LEATHER GOODS WOMEN AMERICA SALES MIX SHOES RETAIL OLD MILL RoA ROW JAPAN WS & OTHER BABY BOOMERS
Slide 15: Two pillar strategy with Men's and Travel opportunity
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP The latest collections reinforcing the two pillar strategy, with Men’s and Travel offering opportunity to gain market share TWO PILLARS DRIVING THE STRATEGY KEY OPPORTUNITIES FASHION TIMELESS MEN’S & TRAVEL Reaffirming the Brand’s Fashion Authority F
Slide 16: Increase share of voice and brand visibility
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP Strongly increase share of voice and Brand visibility across both men’s and women’s categories 2021 2022 2023 ARIA LOVE PARADE EXQUISITE COSMOGONIE MEN’S WOMEN’S MEN’S WOMEN’S CRUISE MEN’S WOMEN’S APR NOV FEB MAY JUN SEP JAN FEB MAY JUN SEP 16
Slide 17: Capitalize on beloved lines, high-end offer, price positioning
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP AUR BY CATEGORY HBG RTW SHOES AS IS TO BE CAPITALIZE ON BELOVED LINES REINFORCE THE HIGH-END OFFER ELEVATE PRICE POSITIONING Periodic price increases and New Beloved lines hierarchy High-end offer enriched constant elevation of collection’s structure
Slide 18: Focus on Young Millennials and Gen Z and mature client base
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP Keep focus on the high potential of Young Millennials and Gen Z, while capitalizing on growth opportunities among mature client base Design authentic collaborations Protect aspirational price points Pioneer first-mover innovations 18
Slide 19: Retail, wholesale and e-commerce
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP RETAIL WHOLESALE E-COMMERCE • Expand network to capitalize on key opportunities • Rationalization almost completed (W&J ongoing) • Consolidate Gucci.com as a best-in-class destination • Continuously invest in flagships to upgrade • Increase productiv
Slide 20: Europe, Americas, China
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP EUROPE AMERICAS CHINA • Drive local client loyalty • Recapture wholesale business through • New leadership to accelerate Brand momentum expanded DOS network • New flagship image locations and • Leverage local high-end consumption special retail conce
Slide 21: New businesses established in 2021: Vault, second-hand, gaming and Web3
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP Established in 2021 to focus on three areas of opportunity VAULT SECOND-HAND GAMING AND WEB 3 New experimental online concept store embracing Test and learn approach to gauge Strengthening Gucci’s leadership in gaming and vintage, limited edition col
Slide 22: Enhanced organization to support growth
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP Enhanced organization to support growth through perfect execution: headcount doubled since 2015, key functions strengthened, new business units created DESIGN OFFICE PRODUCT DEVELOPMENT MERCHANDISING REGIONS Newly established role of Design New separ
Slide 23: Culture of Purpose and Gucci Equilibrium: People and Planet
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP Gucci’s commitment to 10-year Culture of Purpose announced in 2015 and amplified by the Gucci Equilibrium platform across two pillars: People and Planet PEOPLE PLANET GLOBAL EQUITY BOARD ECOLE DE L’AMOUR CARBON NEUTRAL SINCE 2018 INNOVATION & CIRCULA
Slide 24: Key drivers: traffic, AUR and square meters
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP MAGNITUDE OF CONTRIBUTION KEY DRIVERS EVOLUTION TO GROWTH Expected traffic increase driven by: • Acquisition of new clients through the TRAFFIC • Men’s & Travel and Timeless strategy Higher retention driven by the investments 50% on locals also fuele
Slide 25: Ambition: €15 billion revenue and 41%+ EBIT
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP KEY DRIVERS AMBITION • Improve sales density • Sales density >+30% vs 2021 • Increase space on key doors REVENUE • Reshape wholesale • Wholesale & other weight ~ 6% €15 Bn • Boost e-commerce • E-commerce weight ~ 16-18% • Optimize gross margin EBIT •
Slide 26: Three strategic phases from 2015 and beyond
2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP 2015 - 2019 2020 - 2021 2022 AND BEYOND THE REINVENTION THE NEXT CHAPTER – LAYING THE FOUNDATIONS THE PATH TO SUSTAINABLE LEADERSHIP REPOSITION THE PRODUCT OFFER ELEVATE BRAND POSITIONING FOCUS ON FASHION AND TIMELESS PILLARS UPDATE ALL CLIENT TOUCHP
Slide 27: Focus on the Americas
CAPITAL MARKETS DAY – JUNE 9, 2022 ENVISIONING GUCCI: BUSINESS STRATEGY UPDATE 2015 – 2019: THE REINVENTION 2020 – 2021: THE NEXT CHAPTER – LAYING THE FOUNDATIONS 2022 & BEYOND: THE PATH TO SUSTAINABLE LEADERSHIP FOCUS ON THE AMERICAS 27
Slide 28: A pioneer of the luxury market - then and now
FOCUS ON THE AMERICAS A pioneer of the luxury market - then and now JACKIE KENNEDY IN TREVOR NOAH BILLIE EILISH AT THE NEW YORK ELIZABETH TAYLOR HOSTING THE MET GALA IN LOS ANGELES GRAMMYS 1953 HORSEBIT LOAFER ALDO GUCCI IN JESSICA CHASTAIN AT 10 YEARS OF THE MET PALM BEACH THE OSCARS LACMA ART + FI
Slide 29: Americas nearing Gucci's 2015 global business size
FOCUS ON THE AMERICAS Americas is nearing Gucci’s 2015 global business size and continues to maximize growth AMERICAS 2015 TODAY STRATEGIC PRIORITIES STRENGTHEN & SECURE GLOBAL MARKET POSITION REINFORCE BRAND GLOBAL DESIRABILITY AMERICAS DRIVE CLIENT LOYALTY AMERICAS AMERICAS ACCELERATE OMNI GROWTH
Slide 30: Network evolves to realize further market potential
FOCUS ON THE AMERICAS The network evolves to realize further market potential RATIONALIZATION OF WHOLESALE NETWORK NORTH AMERICA DOS NETWORK EXPANSION Door Count Variance vs. 2015 30% 20% 10% 0% -10% -20% -30% -40% -50% 2019 2021 2022 AMBITION Retail Wholesale 2019 2021 AMBITION WS & WS & WS & OTHER
Slide 31: A unified market and a fortified local team structure
FOCUS ON THE AMERICAS A unified market and a fortified local team structure 2021 LATIN AMERICA INTEGRATION & AMERICAS RETAIL & FIELD TEAM STRUCTURE FUTURE EXPANSION + 5 RETAIL VICE PRESIDENTS + 10 MARKET DIRECTORS + 10 CLIENT ENGAGEMENT DIRECTORS + 5 RETAIL MERCHANDISING MANAGERS + 10 TALENT ACQUISI
Slide 32: The Centennial takes center stage in the Americas
FOCUS ON THE AMERICAS The Centennial takes center stage in the Americas, positioning our Fashion and Timeless future #1 MOST DESIRABLE FASHION LUXURY BRAND IN THE U.S.—LAST REPORTED JULY 2021* #1 SHARE OF VOICE IN ALL FASHION LUXURY FASHION: Own fashion DURING Q4 2021 CENTENNIAL Growing reach: $ of
Slide 33: Accelerating Gucci's #1 position in the Americas
FOCUS ON THE AMERICAS Accelerating Gucci’s #1 position in The Americas TWO PILLARS IN ACTION KEY CITY STRATEGY CULTURAL HEAT LEADER IN IMPACT FASHION NEW IMAGE DOORS HEAT IN HEADLINES AUTHENTICITY Reaffirm fashion authority Open 1 per top 5 market Own SOV and visibility across all Amplify leadership
Slide 34: Customer base grows and all tiers elevate with a local approach
FOCUS ON THE AMERICAS Customer base grows & all tiers elevate with a local approach ACQUISITION ELEVATION LOCALIZATION Acquire significant number of new Focus on top tier segment growth Strengthen focus on locals with clients year over year personalized events Elevate price positioning Retain entry-
Slide 35: Infrastructure primed to more than double the 2019 business
FOCUS ON THE AMERICAS Infrastructure is primed to more than double the 2019 business across channels OMNI: SERVICES & INNOVATION STORES: EXCEPTIONAL NEW GUCCI NEW KERING NEW NEW ORDER CLIENT AMERICAS DISTRIBUTION WAREHOUSE MANAGEMENT EXPERIENCE CLIENT SERVICES CENTER: MANAGEMENT SYSTEM CENTER WAYNE
Slide 36: Cohesive strategy across the digital ecosystem
FOCUS ON THE AMERICAS Cohesive strategy across the digital ecosystem • Maximize Canada business to 2x 2021 volume GUCCI.COM • Country rollout to 5 Latin America markets • Launch & expansion of second-hand business • Increase penetration of sales from client services CLIENT SERVICES • Expansion into
Slide 37: Leverage global vision to fortify and accelerate Americas potential
FOCUS ON THE AMERICAS Leverage global vision to fortify and accelerate Americas potential COSMOGONIE ALA MOANA 37
Slide 38: And Beyond
2022 AND BEYOND
Slide 39: Q&A
CAPITAL MARKETS DAY – JUNE 9, 2022 Q&A 39
Slide 40: Thank you
THANK YOU GUCCI