Luxury group Kering reports accelerating organic growth in the fourth quarter and a rebound in profitability in 2021.
Kering reported on Thursday, a nearly one-third jump in fourth-quarter revenue, driven by marketing investments and promotional events for the 100th anniversary of Gucci, its flagship brand.
The group’s overall revenue rose 32 percent on a comparable basis to 5.41 billion euros in the last three months of the year, thanks to an increase of the same magnitude for Gucci. It exceeded analysts’ expectations, who on average were expecting sales of 4.85 billion euros, according to Factset. The group posted a net profit of €3.18 billion last year, up from €2.15 billion in 2020.
In 2021, Gucci reported sales of €9,731 million (up +31% on a reported and comparable basis), exceeding 2019. In particular, it benefited from the launch of new products and a 35% increase in sales in the directly operated store network. The November release of Ridley Scott‘s film “House of Gucci” also helped raise the brand’s international profile.
At Yves Saint Laurent, 2021 sales amounted to €2,521 million, up +45% on a reported basis and +46% on a comparable basis. Sales growth in 2021 is very strong in directly operated stores, reaching +55% compared to 2020 and +35% over two years, thanks to increased demand for ready-to-wear and shoes.
For Bottega Veneta, in 2021, revenue will exceed 1.5 billion euros, up +24% on a reported basis and +25% on a comparable basis compared to 2020 on a high basis of comparison. Activity in directly-operated stores was very strong, up +29% like-for-like versus 2020.
The 2021 sales of the group’s other Houses, which include Balenciaga and Alexander McQueen, reached €3,264 million (+43% on a reported basis and +44% on a comparable basis), representing €1 billion in additional sales compared to 2020 ed-nederland.com.
François-Henri Pinault, Chairman and CEO, is delighted with these excellent results: “Kering has achieved excellent performance in 2021, consolidating its leading role in the future of Luxury Goods. By combining authenticity and creative audacity, all our Houses have returned to strong sales growth, well ahead of 2019, while strengthening their exclusive distribution and brand equity. We have expanded our teams with new talent, and I am sincerely grateful to all our employees for the outstanding work they do. Our sustainability commitments are ambitious and we are working tirelessly to achieve them. Our Houses are stronger than ever and we are confident that this momentum will continue in 2022 and beyond.”
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