Kering’s income hits record
In a “phenomenal” result, global luxury group Kering had record operating revenue last year, driven in large part by the popularity of Gucci.
Kering’s income totalled €15.4 billion (US$19 billion), up 25 per cent as reported or 27.2 per cent on a comparable basis. Revenue from luxury activities was up 27.5 per cent as reported, or 29.9 per cent on a comparable basis, while for sport and lifestyle activities, revenue was up 12.8 per cent as reported or 14.7 per cent on a comparable basis.
Describing it as a phenomenal year, chairman/CEO François-Henri Pinault says the group created more than €3 billion in extra revenues in a single year, and generated more than €1 billion in additional EBIT.
In a performance “nothing short of spectacular”, Gucci was amplifying its desirability across all markets.
“Saint Laurent is on a rapid growth track, while Bottega Veneta pursues its redeployment. Balenciaga is charting an impressive development trajectory, and our other luxury brands are experiencing positive momentum,” says Pinault.
Revenue for luxury activities topped €10 billion last year, up 29.9 per cent year on year based on comparable data. Comparable growth was up 44.6 per cent for Gucci and 25.3 per cent for Yves Saint Laurent.
Other luxury brands saw accelerated revenue growth (up 14.1 per cent on a comparable basis), especially Balenciaga, which delivered the fastest growth rate of all group brands in the second half.
Puma’s revenue topped €4 billion for the first time, a rise of 15.8 per cent on a comparable basis, while recurring operating income for the brand jumped 92.7 per cent.