On a similar basis, the company's directly controlled retail network, which includes e-commerce sites, had a 10% YoY growth in revenue, mostly due to Western Europe and Japan.
With a recurring operating margin of 27.5%, Kering's recurrent operating income increased by 11% in FY22 to reach €5.6 billion. The group's net profit increased 14% to €3.6 billion while free cash flow from operations remained very high at over €3.2 billion.
According to a press release from the company, overall sales in the fourth quarter (Q4) of FY22 were down 2% YoY as reported and 7% on a comparable basis, with inconsistent results among houses and regions.
Gucci, the marquee brand of Kering, recorded revenue of €10.5 billion for FY22, an increase of 8% as reported and 1% on a comparable basis. Although sales in directly run stores fell 15% as a result of the situation in China, the brand's Q4 FY22 revenue was down 14% on a comparable basis compared to the same period in 2021.
In FY22, Yves Saint Laurent had significant growth. Revenue reached €3.3 billion, up 31% as reported and 23% on a comparable basis. Sales increased 4% YoY on a comparable basis in the fourth quarter of FY22, mainly to strong results in the directly controlled retail network, where they increased by 7%. Revenue from wholesale fell 13% year over year.
Moreover, Bottega Veneta had a record year with sales of €1.7 billion, up 16% as reported and 11% on an equivalent basis. Sales for Q4 FY22 increased by 6% YoY on a comparable basis, driven by strong growth in the directly owned retail network (up 4% YoY) and in wholesale (up 13 percent YoY).
The revenue of Kering's other houses, which includes names like Balenciaga, Alexander McQueen, and Brioni, reached €3.9 billion in 2022, up 18% as reported and 16% on a comparable basis. Other houses' revenue in Q4 FY22 decreased 4% YoY on a similar basis. While wholesale revenue fell 26% YoY, sales in the directly operated retail network of the other houses increased by 2% YoY during the quarter, driven by double-digit growth in Western Europe and Japan.
"In 2022, all of our houses generated record revenues and contributed to improved operating profits. However, not all of these commendable performances lived up to our hopes and potential. Notwithstanding the difficulties some of our households had, particularly near the end of the year, we are certain that we are following the right course of action in the long run. A strong entrepreneurial culture, along with the values of accountability and involvement, are shared by all 47,000 of our employees. Together, we cultivate the exclusivity and attractiveness of our brands so that they all have market positions consistent with their distinctive histories and well-known creative abilities. I have no doubt that 2023 will be a year of success for our houses and progress for our organisation in a still-uncertain environment", said Francois-Henri Pinault, chairman, and chief executive officer.
François-Henri Pinault PHOTO: WIKIPEDIA