Kering results: Gucci strength on full display
French luxury giant Kering broke records in 2017 thanks, in large part, to incredible growth from iconic brand Gucci. The company doubled net profits, saw a 56% rise in operating profit against the same period last year, and achieved sales above €15 billion for the first time.
Analysts had expected this outperformance – but Kering overshot their expectations of €15.35 - €15.38 billion by delivering €15.5 billion for the year. This is 25% higher than the same quarter in the previous year. But while all Kering’s brands performed well, Gucci’s success is particularly noteworthy.
Kering’s share price has appreciated by 60% throughout the year
SOURCE: Yahoo Finance
Kering’s CEO, Francois-Henri Pinault, said: “Kering delivered a phenomenal year in 2017. We created over three billion euros in additional revenues in a single year, and generated more than a billion in additional earnings. Gucci, whose performance was nothing short of spectacular, is amplifying its desirability across all markets.”
Gucci was responsible for a large chunk of Kering’s sales throughout the year. Comparable sales at the brand rose by 43% year on year, for a total revenue of €6.2 billion. This outpaced longtime rival Hermes who recently reported a revenue of €5.5 billion for 2017.
Other top performers include brands Yves Saint Laurent (which saw sales rise by 25% against the previous year) and Puma (which saw sales rise by 16% against the previous year). For the luxury division as a whole, a new sales record was broken, as the company posted over €10 billion for the division for the first time.
Dominion holds Kering in its Global Trends Luxury Fund.
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