After a promising start to the year and in an exceptionally challenging environment, Kering posted revenue of €3,203.2 million in the first quarter of 2020, down 15.4% on a reported basis and 16.4% on a comparable basis.
Revenue from the Luxury Houses amounted to €3,065.7 million (down 16.0% as reported and 16.9% on a comparable basis).
Like its archrival LVMH, Kering announced a 30% reduction for its 2019 dividends to 8 euros per share.
Gucci – deep Covid-19 impact despite excellent trends early in the quarter
Gucci posted revenue of €1,804.1 million in the first quarter of 2020, down 22.4% as reported and 23.2% on a comparable basis. Sales from directly operated stores fell 23.8% against an extremely high first-quarter 2019 comparison basis.
Gucci had an excellent start to the year, with double-digit growth in North America in the first two months of the year and another sparkling performance in Western Europe.
However, activity levels were hit hard from February onwards due to the House’s strong positions in Asia-Pacific and among Chinese tourists worldwide.
Trends in Mainland China are gradually improving since stores began reopening in early March.
Yves Saint Laurent’s geographic footprint helps mitigate the market impact
Yves Saint Laurent reported revenue of €434.6 million in the first quarter of 2020 (down 12.6% as reported and 13.8% on a comparable basis).
This relatively contained decrease can be attributed to the House’s limited exposure to the Asian markets, as well as a good start to the quarter in Western Europe and North America.
Retail sales in the directly operated store network were down 17.6% on a comparable basis, while wholesale dropped 5.7%.
Bottega Veneta’s reinvention drives sales growth
On the back of its successful creative renewal, Bottega Veneta posted a remarkable performance in the first three months of the year, with revenue up 10.3% as reported and 8.5% on a comparable basis, to €273.7 million.
Retail sales in directly operated stores remained broadly unchanged (down 0.9%) despite the exceptionally unfavorable market context.
The House’s collections met with resounding success among local customers in North America (up 31.3%) and Western Europe (up 25.4%), but sales were down in Asia-Pacific and Japan.
At its April 21, 2020 meeting, the Board of Directors also approved the revised 2020 executive compensation plan, reducing by 25% the fixed remuneration of the Chief Executive Officer and eliminating the variable portion of the 2020 remuneration of the Chief Executive Officer and Deputy Chief Executive Officer. The Board of Directors also decided to reduce Directors’ fees by 30%, thereby maintaining the Board’s total remuneration at the level of prior years notwithstanding the planned increase in the number of Directors.
Featured Photo : © Kering
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