Kering’s share rose 5.5% in morning trading as the French luxury goods group saw sales and profits for 2021 rise well above pre-pandemic levels, with two-quarter results for Gucci’s core brand. be particularly encouraging.
The group posted a net profit of € 3.18 billion for the year, and revenue of $ 17.65 billion, up 13% on an organic basis, from € 15.88 billion in 2019 and up 35% from € 13.10 billion in 2020, in the middle of the pandemic.
The results were boosted by a strong end to year for the group, with revenues rising to 5.41 billion euros in the fourth quarter.
The sales of the Italian fashion house Gucci – which contributes the most to the revenue and profits of Kering – increased by 18% compared to the corresponding period of 2019, marking a recovery after a disappointing performance below pre-pandemic levels in the previous quarter.
The results show that Gucci is narrowing the retail sales gap with its main competitors in the fashion industry, after a period of relative underperformance, Citi said, commenting on the results.
“Gucci is on the right track and gaining market share in the fourth quarter,” the bank said, but warned that in the coming quarters it would be crucial to prove that the brand could sustain growth.
Source: Capital
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