Gucci Lags at Kering's 2020 Results -- Earnings Review
By Joshua Kirby
Kering reported 2020 earnings today. Here are the
Sales: Revenue at the French luxury-goods group came in slightly
below analyst expectations at EUR13.10 billion.
Net profit: Net profit was EUR2.15 billion for 2020, down from
EUR2.31 billion in 2019 but beating analyst expectations of EUR1.74
WHAT WE WATCHED:
-GUCCI: As expected, Kering's most important brand lagged
overall performance. Gucci sales were down 23% on the year, versus
18% for the group, including a 10% drop in the year's fourth
quarter. For comparison, rival brands Dior and Louis Vuitton drove
LVMH Moet Hennessy Louis Vuitton's soft-luxury division to
double-digit growth in the same period. However, it is worth noting
that these figures include a 33% decline in wholesale amid an
ongoing rationalization strategy.
-OTHER BRANDS: Bottega Veneta was among the best of the rest for
Kering, posting positive growth of 3.7% for the year, including a
16% rise in the year's final quarter. Balenciaga and Alexander
McQueen also booked revenue growth in the full year, and Chief
Financial Officer Jean-Marc Duplaix noted in a call with media that
the group's "less mature" brands have promising prospects for
-WINTER PROGRESS: Despite Gucci's faltering and a new wave of
store closures, Kering didn't book a significant sequential
downturn in the fourth quarter, with a 4.8% revenue decline similar
to the figure for the third quarter.
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(END) Dow Jones Newswires
February 17, 2021 02:45 ET (07:45 GMT)
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