- published: 22 Jun 2014
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{{#invoke:Infobox|infobox}} Kering (previously known as Pinault-Printemps-Redoute until 18 May 2005 and PPR) is a French multinational holding company which develops a worldwide brand portfolio (luxury, sport & lifestyle divisions and retail brands) distributed in 120 countries. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index.
On 22 March 2013, Pinault announced that the group would rename itself as Kering, and was approved by shareholders on 18 June 2013.[1][2]
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On the 2nd June 1962, François Pinault officially opened the Etablissements Pinault, specialized in wood trade negotiation, and then in construction material. First a company from Brittany, it grew organically and thanks to successive acquisitions, it reached national recognition. In 1987, the Pinault group took control of the paper-maker La Chapelle d’Arblay, which faced economic difficulties. It was then sold to Finnish group Kymmene. Pinault SA was listed in the Second Marché of Bourse de Paris in 1988, and allowed institutions such as the Crédit Lyonnais or the AGF to invest in its company.
In March 1990, François Pinault was elected president of CFAO, which specialized in electrical material distribution and negotiation in Africa.
In April 1991, Pinault SA entered the retail distribution market, with the takeover of Conforama.
In 1992, the Group sold the Compagnie Industrielle d’Ameublement (kitchen furniture), of Ordo (office furniture) and Isoroy (wood panel makers). During the same year, The Pinault-Printemps Group was born out of the Au printemps SA takeover, which owned 54% of La Redoute and Finaref. In 1993, the Armand Thierry company, bought by Le Printemps, was sold. Disco (Food-industry retailer) was also sold.
In 1994, La Redoute was absorbed by Pinault-Printemps, and renamed Pinault-Printemps-Redoute. In July, the group took control of French retailer Fnac.
In 1995, the Group launched its first Website: www.laredoute.fr.
In 1996, CFAO bought SCOA, the main pharmaceutical distributor in West Africa. The same year, PPR created Orcanta, a lingerie distributor.
Over the following years, PPR continued to develop its activities in retail and home shopping sectors. In 1997, Redcats (PPR’s home shopping retailer, built around La Redoute) took control of Ellos, Scandinavia’s home shopping leader. The same year, Fnac created Fnac Junior, a concept-store which targets young people under 12.
In 1998, PPR continued its acquisitions in the home shopping sector: Redcats acquired 49.9% of Brylane (home shopping company in the United States). PPR also took control of Guilbert (specialized in office furniture retailing).
In 1999, Fnac launched its Website: www.fnac.com
1999 is the year when PPR first invested in the luxury sector, with a 42% acquisition of Gucci Group NV. More acquisitions followed to build a stronger luxury identity for the Group: Yves Saint Laurent (now Saint Laurent Paris), YSL Beauty and Sergio Rossi. Then in 2000 the jeweller Boucheron, and the watchmaker Bedat & Cie. At the same time, PPR launched Citadium, a new sports boutique, and bought Surcouf.
In 2001, more luxury brand acquisitions followed: Gucci Group bought Bottega Veneta and Balenciaga, and signed partnership deals with Stella McCartney and Alexander McQueen. Between 2001 and 2004, PPR reinforced its capital participation in Gucci Group.
In 2002, PPR sold Facet, the subsidiary company of Conforama’s private card, to BNP Paribas, and Finaref, its financial services subsidiary, to Crédit Agricole. The same year, Guilbert’s home shopping activities were sold to Staples, while the following year its office-furniture negotiation activities were sold to Office Depot.
In 2003, PPR sold its Pinault Bois et Matériaux company to the British group Wolseley. After symbolizing the very first step of the Group in the wood trade sector, and becoming a famous French retailer in wood material construction, import and transformation, Pinault Bois was sold for 565 million euros.
In 2004, PPR sold the electrical material manufacturer Rexel. After a public bid, Pinault-Printemps-Redoute increased its shares to 99. 4% of Gucci Group’s capital.
The 18 May 2005, Pinault-Printemps-Redoute changed its name to become simply PPR.
In December 2012 PPR SA bought a majority stake in Chinese jeweler Qeelin which has 4 boutiques in Hong Kong, 3 in Europe from totally 14 boutiques to aid sales in the largest market for high end goods. The acquisition price is undisclosed.[3]
In 2006, PPR made a certain number of disposals, for example the sale of 51% of France Printemps (with brands such as Made in Sport and Citadium) to RREEF and the Borletti Group, as well as the lingerie company Orcanta, bought by Chantelle. Meanwhile, Redcats (which comprises La Redoute and many other home shopping companies) bought The Sportman’s Guide Inc.
With the acquisition of a control participation in Puma in 2007 (of 27, 1%) and after acquiring a 62, 1% share of Puma, the Group consolidated its position in the Sport & Lifestyle sector.In March 2007, PPR sold Kadéos to the Accor group.
In 2008, PPR sold YSL beauty to L’Oréal for 1,15 billion euros.
In 2009, Gucci Group sold Bedat & Cie, a Swiss watchmaker to Luxury Concepts. Then, PPR floated its subsidiary CFAO and gave up control (58%). On December the 9th 2010, PPR announced that it was in exclusive negotiation with South-African company Steinhoff, in order to divest Conforama. On the 18 March 2011, the Group completed its disposal of Conforama to Steinhoff International, marking a new stage towards the Group’s evolution towards the Luxury and ‘Sport & Lifestyle’ sectors.
Bédat & Co - on February 25, 2009 Gucci announced a definitive agreement for the sale of Bédat & Co to Luxury Concepts Watches & Jewellery Sdn Bhd, the Malaysia-based brand management company, in partnership with Viviane Fankhauser, then acting CEO of the firm.[4]
Conforama - sale to Steinhoff International Holdings agreed on 31 January 2011.[5]
PPR, through its Puma subsidiary, bought into Wilderness Safaris, a South African company specialized in green luxury tourism (a fair-trade clothes line was launched building on the company’s image), and leading golf equipment manufacturer Cobra in 2010[6]
On the 3rd May 2011, the Group launched a friendly bid for Volcom, a company specialized in action sports. This acquisition reinforces PPR’s new positioning. As François-Henri Pinault said : “PPR’s Sport & Lifestyle Group is well-positioned to develop in the promising segment of action sport, thanks to Volcom’s outstanding brand with strong identity and unique heritage,”.
In July 2011, PPR took control of the Sowind Group, the Swiss watchmaker, whose brands include Girard-Perregaux and JeanRichard.
In November 2011, PPR acquired Brioni.[7]
In August 2012, PPR announced its new joint-venture with the online retail specialist Yoox to administer the e-commerce operations of most of its luxury brands.[8]
In January 2013, the Group announced a partnership with Christopher Kane.[9]
On 22 March 2013, FHP suggested the name Kering to highlight the company's focus on its luxury and sport/lifestyle divisions.
Phonetically, it is pronounced as « Caring », but also plays with the origins of the business in the Brittany region of France. In Breton ker [1] means ‘home’ or ‘place to live’. The new logo also takes an owl as its new emblem, an animal which carries a deep signifance.
“Kering is a name with meaning, a name that expresses both our purpose and our corporate vision. Strengthened by this new identity, we shall continue to serve our brands to liberate their potential for growth”,[1] added François-Henri Pinault, CEO.
PPR is made up of four operational branches: Luxury, Sport & Lifestyle, Fnac and Redcats. In 2012, the main brands of the Group are:
amongst whom the Independent Directors are :
Source : www.ppr.com
PPR's chief competitors in luxury goods conglomerates are LVMH and Richemont.
Year | 2006 | 2007 [10] | 2008 [10] | 2009 [10] | 2010 [11] | 2011[12] | 2012[13] |
---|---|---|---|---|---|---|---|
Sales | 17 931 | 17 761 | 20 201 | 16 525 | 11 008 | 12 227 | 9 736 |
EBITDA | 1 540 | 2 096 | 2 140 | 1 790 | 1 649 | 1 911 | 2 067 |
Net result, share of the group | 680 | 1 058 | 924 | 985 | 965 | 986 | 1 048 |
Net debt | 3 461 | 6 121 | 5 510 | 4 367 | 4 000 | 3 395 | 2 491 |
Sales which had an impact on the Group with the associated key dates :
Kering complies with the MSI 20000 financial standards.
Years | 2007 | 2008[14] | 2009[14] | 2010[15] | 2011[16] | 2012[17] |
---|---|---|---|---|---|---|
Number of shares (in millions) | 128 | 128.4 | 126.5 | 126.8 | 127 | 126.2 |
Market capitalizations (in millions of Euros) | 14089 | 5897 | 10 661 | 15 093 | 14 034 | 17 764 |
Number of daily transactions | 692 022 | 1 116 420 | 701 105 | 453 415 | 385 265 | 317 960 |
In 2009, François-Henri Pinault and PPR supported Home, a movie by Yann Arthus-Bertrand and co-produced by Luc Besson. To celebrate the movie’s official launch (on 5 June 2009), free screenings were made available across 100 countries: on television (France 2 on the night of its launch at 8:35pm in France), for the Internet ( via YouTube and a dedicated Website), and finally for movies and DVD and finally in several cities around the globe, including the Champ de Mars in Paris during open air projections. Home was seen by over 400 million people around the world [18]
In March 2011, PPR launched PPR Home For The Long Run, or PPR Home, under Jochen Zeitz’s responsibility.[19] By moving beyond the traditional Corporate Social Responsibility model, this initiative sets a new standard in sustainability and business practice in the Luxury, Sport & Lifestyle and Retail sectors. “The deep conviction that Sustainability creates value is part of my strategic vision for PPR. Sustainability can – and must – give rise to new, highly ambitious business models and become a lever of competitiveness for our brands. PPR HOME will provide us with novel, more sustainable approaches to contribute to a better world for the long run“, said Francois- Henri Pinault, CEO of PPR.
PPR launched PPR Corporate Foundation For Women’s Dignity And Rights in 2008, as part of PPR Home. It's now named Kering Foundation Under the management of Céline Bonnaire, the PPR Foundation for Women’s Dignity and Rights develops and supports solidarity projects in partnership with Non-Governmental Organisations (NGOs) for women around the world. It is organized around five key pillars:
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