By Joshua Kirby 
 

Kering said Wednesday that net profit dropped in 2020 as revenue was hit by store closures and a lack of tourism, but that performance recovered in the second half of the year.

Net income at the French luxury-goods conglomerate dropped to 2.15 billion euros ($2.60 billion), from EUR2.31 billion in 2019. Analysts had forecast net income of EUR1.74 billion, according to a FactSet-compiled consensus of 11 analyst estimates.

Revenue came to EUR13.10 billion, an 18% drop from EUR15.88 billion previously. Analysts had expected revenue of EUR13.26 billion, according to FactSet.

Revenue at key brand Gucci dropped 23% on the year to EUR7.44 billion, including by 10% in the fourth quarter, while at the company's houses overall it dropped 4.8% in the quarter on a comparable basis, Kering said.

The company said it is confident in its medium- and long-term growth potential. The "less mature" brands such as Balenciaga and Bottega Veneta especially have good growth prospects, Chief Financial Officer Jean-Marc Duplaix said in a call with media.

 

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

 

(END) Dow Jones Newswires

February 17, 2021 01:51 ET (06:51 GMT)

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