Kering Group’s sales drop 4 per cent in “trying year”

Gucci’s parent company, Kering Group, has reported a revenue of €19.5 billion (US$21 billion) for last year, down 4 per cent year on year, with net income attributable to the group amounting to €2.9 billion. 

“In a trying year for the group, we strengthened our organization and took significant steps to further enhance the visibility and exclusivity of our Houses,” said François-Henri Pinault, chairman and CEO of Kering Group.

Pinault added the company is focusing on the revitalisation of its flagship label Gucci this year. Gucci’s turnover was down 2 per cent to €9.9 billion last year and 4 per cent in the fourth quarter of the year. Yves Saint Laurent’s revenue amounted to €3.2 billion for the year, down 1 per cent. 

Meanwhile, sales in the group’s eyewear division jumped 35 per cent to €1.5 billion. 

“The launch of Kering Beauté and the acquisition of Creed will enable us to capture our share of the steadily growing beauty market,” said Pinault.

The group’s sales in the fourth quarter were down 4 per cent despite revenue growth in Asia Pacific and Japan. 

“In a market environment that remains uncertain in early this year, our continuing investments in our Houses will put pressure on our results in the short term,” he added. 

Last month, the luxury powerhouse acquired a prime retail site at 715-717 Fifth Avenue, on the Southeast corner of 56th Street, for US$963 million from Jeff Sutton’s Wharton Properties. It acquired the luxury fragrance label Creed and fashion house Valentino last year. 

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