Kering 2020 Revenue, Net Profit Fall; Gucci Down More Steeply
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 email@example.com;
(END) Dow Jones Newswires
February 17, 2021 01:51 ET (06:51 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.