Kering FY2020 revenues drop by 17.6 percent
Feb. 18, 2021
Total revenue generated by Kering’s Houses in 2020 amounted to 12,676.6 million euros, down 17.6 percent reported and 16.5 percent on a comparable basis. The company said in a statement that while the health crisis and lockdown measures took a heavy toll on the Houses’ first-half sales (down 30.2 percent), the situation improved significantly in the second half (down 3.3 percent), despite new restrictions towards the end of the year in certain regions.
In the retail network, comparable sales declined 15.9 percent over the year and were down 1.5 percent in the second half, while ecommerce sales rose 67.5 percent. Wholesale revenue was down 17.4 percent on a comparable basis. In the fourth quarter, total group revenue contracted by 4.8 percent on a comparable basis, including a 2.9 percent decrease for the retail network. Recurring operating income for the Houses totalled 3,367.1 million euros in 2020, resulting in a recurring operating margin of 26.6 percent.
“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. 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,” said François-Henri Pinault, Kering Chairman and Chief Executive Officer.
Kering Houses post decline in full year turnover
Gucci posted revenue of 7,440.6 million euros in 2020, down 22.7 percent as reported and 21.5 percent on a comparable basis. Sales generated in directly operated stores fell 19.5 percent on a comparable basis, while second half sales dropped by 5.9 percent. The company added that online sales were up nearly 70 percent for the year. Wholesale revenue dropped 33.4 percent based on a comparable basis. In the fourth quarter, revenue was down 10.3 percent on a comparable basis, including a 7.5 percent decrease for the retail network. Gucci’s recurring operating income in 2020 totalled 2,614.5 million euros and recurring operating margin was 35.1 percent for the year.
Yves Saint Laurent posted revenue of 1,744.4 million euros, down 14.9 percent as reported and 13.8 percent on a comparable basis, while second half revenue saw an increase of 2.1 percent on a comparable basis. In the full year, revenue from directly operated stores retreated 13.4 percent on a comparable basis, while online sales surged, up nearly 80 percent, and wholesale revenue dropped 13.7 percent on a comparable basis. In the fourth quarter, sales were up 0.5 percent on a comparable basis, with favourable sales momentum in Asia-Pacific, North America and Japan. Recurring operating income totalled 400 million euros in the year, yielding a recurring operating margin of 22.9 percent.
Bottega Veneta posted revenue of 1,210.3 million euros in 2020, up 3.7 percent as reported and 4.8 percent on a comparable basis. Sales in the second half were up 18 percent on a comparable basis. Comparable revenue in directly operated stores contracted 5.3 percent in the full year but rose 7.2 percent in the second half, buoyed by robust sales momentum in the Asia-Pacific region as well as by e-commerce. Wholesale grew by 48.5 percent. In the fourth quarter, revenue increased 15.7 percent on high bases of comparison. Bottega Veneta posted recurring operating income of 172 million euros for 2020 for a recurring operating margin of 14.2 percent. The House delivered recurring operating income growth of 15.4 percent in the second half of the year.
Revenue of the Other Houses totalled 2,281.3 million euros, down 10.1 percent as reported and 9.4 percent on a comparable basis. The company said, Balenciaga and Alexander McQueen delivered year on-year revenue growth. The Jewelry Houses, penalized by their exposure to Western Europe, reported strong sales growth in Asia. Sales at Qeelin were up over the year, buoyed by the strong recovery in Mainland China. Boucheron also delivered a solid performance in the Asia-Pacific region. In the full year, revenue for the Other Houses from the retail network was 4.9 percent lower, while wholesale revenue shrank 13 percent. Sales in the fourth quarter were up 1.7 percent on a comparable basis). Recurring operating income for the Other Houses totalled 180.6 million euros in the year, yielding a recurring operating margin of 7.9 percent.
The Corporate and other segment delivered 423.6 million euros in sales, including 398.6 million euros for Kering Eyewear after eliminating intra-group sales and royalties paid to the Houses. Kering Eyewear had total sales of 487.1 million euros, down 17.6 percent on a comparable basis, while second half revenues were down 8.6 percent.
At its February 16, 2021 meeting, the board of directors has decided to ask shareholders to approve a 8 euros per-share cash dividend for 2020 at the Annual General Meeting to be held to approve the financial statements for the year ended December 31, 2020.
Picture: Gucci website