Kering Falls on Poor Sales for Gucci in 2020
By Joshua Kirby
Kering shares dropped sharply Wednesday after sales at key brand
Gucci clouded the company's 2020 earnings report.
At 0835 GMT, shares traded down 8.5% at 517.20 euros
Gucci, by far the French luxury-goods conglomerate's biggest
brand, posted a 10% sales decline in the final quarter of 2020 to
take it to a 23% drop for the full year, lagging behind stable
mates such as Balenciaga and Bottega Veneta that increased their
sales over the year.
The figures represent a gap of some 30 percentage points in the
quarter against rival soft-luxury brands at LVMH Moet Hennessy
Louis Vuitton, Bernstein analyst Luca Solca noted. "We expect
market pressure to increase on Gucci to produce efforts aimed at
reinstating momentum," he said.
Questions will center around Kering's strategy to boost its
powerhouse brand, according to RBC Capital Markets analyst Piral
Dadhania. "We believe today's print will raise further questions on
the revenue-recovery profile for Gucci, and the investment
requirements," Mr. Dadhania said.
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(END) Dow Jones Newswires
February 17, 2021 03:58 ET (08:58 GMT)
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