Kering looks to rebound after 2020 coronacrisis

French luxury goods group Kering, home to brands such as Gucci and Yves Saint Laurent, said Wednesday a positive performance in North America and Asia helped it weather the coronavirus crisis last year.

Sales fell 17.5 percent to 13.1 billion euros (15.8 billion dollars) last year but the group still posted a net profit of 2.15 billion euros, down 6.9 percent.

After lockdowns slashed consumer spending early in the year, the second half saw a strong rebound, led by markets in Asia and North America, Kering said.

In addition, there was a “very strong acceleration in e-commerce of nearly 70 percent.”

Kering sales drop, but Bottega Veneta shines

The company did not give precise forecasts for this year but said that “if the current environment is marked by many uncertainties, the health crisis has not undercut the key drivers of growth in the global luxury goods business.”

By brand, sales at Gucci last year tumbled 22.7 percent to 7.4 billion euros with Yves Saint Laurent down 14.9 percent at 1.7 billion euros.

Bottega Veneta bucked the trend, with sales up 3.7 percent at 1.2 billion euros.

“In a year of disruption, Kering demonstrated remarkable resilience and agility. We achieved a solid top-line recovery in the second half, we protected our margins while continuing to invest in our Houses and growth platforms, our cash flow generation remained elevated, and we further strengthened the Group’s financial structure,” Kering boss Francois-Henri Pinault said in a statement.

He continued: “I am proud of the solidarity our Group has shown in this unprecedented environment. More than ever, I am convinced that our strategy and business model are perfectly in sync with the current and future trends of the Luxury universe. We are emerging from the crisis stronger and better positioned to leverage the rebound. We invest in all our brands to maximize their potential, and to resume our profitable growth journey.” (AFP)

Photo credit: Gucci, Facebook