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Kering Revenues Vault 35.1% in Q4 as Gucci Improves

PARIS – An acceleration at its star brand Gucci in the fourth quarter helped French group Kering achieve revenue growth of 35.2% in 2021, a 13% improvement over 2019.

Gucci sales jumped 31.6% in the three months ended Dec. 31, up 18% versus 2019, with Kering crediting “the success of its iconic lines, along with an intense schedule of events and new product launches.” In 2021, Gucci revenues tallied 9.73 billion euros, just shy of its oft-stated goal of 10 billion euros.

Sales at Gucci had slowed in the third quarter, rising only 3.8%, as a resurgence in coronavirus cases last summer impacted business in Asia, while consumers held back on making purchases in expectation of its Aria collection, which included a “hacking” project with Balenciaga, landing in stores in late September.

Meanwhile, Saint Laurent logged a “record performance” in 2021, with revenues vaulting 45.6% to 2.52 billion euros, and Bottega Veneta surpassed the 1.5 billion-euro revenue threshold.

The conglomerate also touted “excellent performances” at Balenciaga and Alexander McQueen, which are included in its “other houses.” This division saw revenues rise 43.8% to 3.26 billion euros.

The strong results exceeded market expectation, and sent Kering shares up 7.1% at 10 a.m. CET.

Recurring net income at Kering improved 70.4% to 3.36 billion euros on revenues of 17.65 billion euros. Recurring operating income jumped 60%, representing a 4.5% bump in margin.

“Thanks to their ability to blend authenticity with bold creativity, all our houses achieved sharp sales rebound, way beyond their 2019 levels, while reinforcing the exclusivity of their distribution and further enhancing their brand equity,” said François-Henri Pinault, chairman and chief executive officer of Kering.

“All our houses are stronger than ever before, and we are confident we will extend last year’s momentum in 2022 and in coming years,” he added.

The company gave no specific guidance for its fashion and jewelry houses other than to “achieve same-store revenue growth while ensuring the targeted and selective expansion of their retail networks.”

In a release, Kering cited a strong rebound from the pandemic downturn in 2020, “driven by consumer appetite for premium goods. Kering is perfectly positioned to fully benefit from this upturn.”

The results confirm auspicious times for Europe’s luxury giants.

Fourth-quarter revenues at LVMH Moët Hennessy Louis Vuitton totaled 20 billion euros, up 22% in organic terms versus 2019, with the fashion and leather goods division logging organic growth of 51%, reflecting the strength of marquee brands Louis Vuitton and Dior.

Compagnie Financière Richemont reported that revenues in the three months to Dec. 31 jumped 38% at constant currency rates versus the same period two years earlier.

This story was reported by WWD and originally appeared on WWD.com.

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