Kering, while 2020 was a year to forget for Gucci and YSL, Bottega Veneta shined (+4.8%)

Kering, while 2020 was a year to forget for Gucci and YSL, Bottega Veneta shined (+4.8%)

2020 was a year to forget. But, given the pandemic, it couldn’t be otherwise. Kering’s total revenue for the year were of 12.68 billion euro, or -17.6% at current rates and -16.5% at constant rates, on a comparable time period. The group highlighted the 67-5% increase in digital sales: they are worth 13% of total retail sales, as of today. Even so, net profits decrease by 6.9% to 2.15 billion euro. Within the complex context, which mines the performance of many brands, Bottega Veneta shined.

A year to forget

As far as brands go, Gucci’s revenue for 2020 was of 7.4 billion euro (down 21.5% on yearly basis). Sales went down 10.3% in the last quarter: analysts cited by Reuters expected it to be just -4%. Yves Saint Laurent’s revenue amounted to 1.7 billion (-13.8%), with the 4th quarter up +0.5%. Bottega Veneta, on the other hand, Bottega Veneta closed the year with 1.2 billion euro in sales: up 4.8%, with a fourth quarter up by 15.7%. As far as the other brands go, Kering highlighted the “double-digit growth of the Couture and Leather Goods division”. While “Balenciaga and Alexander McQueen performed well, with growing revenue for the year.

The comment

Given the results, “Kering continues to trust in its growth potential in the medium and long term”. The group stated in a note that “the crisis” brought on by Covid-19” didn’t put the structural drivers, of the global luxury market, up for discussion”.

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