Solid performances - Kering ready to leverage the rebound



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    • Solid performances - Kering ready to leverage the rebound

    Solid performances - Kering ready to leverage the rebound



    Consolidated revenue: €13,100.2 million
    down 17.5% reported and 16.4% comparable

    Recurring operating income: €3,135.2 million
    Recurring operating margin: 23.9%

    Net income attributable to the Group: €2,150.4 million
    Recurring net income attributable to the Group1 : €1,972.2 million
    Recommended ordinary dividend stable at €8.00 per share

    « In a year of disruption, Kering demonstrated remarkable resilience and agility. 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. This year, safeguarding the health and safety of our employees and customers was our first priority. I am grateful for the resourcefulness and commitment of all Kering people. I am proud of the solidarity our Group has shown in this unprecedented environment. More than ever, I am convinced that our strategy and business model are perfectly in sync with the current and future trends of the Luxury universe. 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. » 

    François-Henri Pinault, Chairman and Chief Executive Officer





    -    2020 consolidated revenue: €13,100.2 million, down 17.5% as reported and 16.4% on a comparable basis.
    o    Sales generated by the retail network down 15.9% on a comparable basis in 2020 owing to store closures and the halt in tourism; sharp rebound in the second half led by North America and Asia-Pacific. 
    o    Further sharp acceleration in online sales, up 67.5% over the year. Online sales accounted for 13% of total sales generated by the retail network.
    o    Sales generated through the wholesale network down 17.4% on a comparable basis. 

    -    Resilient profitability, with recurring operating income of €3,135.2 million, yielding a solid recurring operating margin of 23.9%. Further investment in the Houses and growth platforms. 


     Recurring net income attributable to the Group: net income from continuing operations attributable to the Group, excluding non recurring items.



    Total revenue generated by Kering’s Houses in 2020 amounted to €12,676.6 million, down 17.6% as reported and 16.5% on a comparable basis. While the health crisis and lockdown measures took a heavy toll on the Houses’ first-half sales (down 30.2%), the situation improved significantly in the second half (down 3.3%), despite new restrictions towards the end of the year in certain regions.
    In the retail network, comparable sales declined 15.9% over the year and were nearly stable in the second half (down 1.5%). E-commerce sales further accelerated (up 67.5%), accounting for 13% of total sales generated by the retail network in the year.
    Wholesale revenue was down 17.4% on a comparable basis, in line with the Group’s strategy to streamline and make this channel more exclusive.

    In the fourth quarter, total revenue generated by the Houses contracted 4.8% on a comparable basis, including a 2.9% decrease for the retail network. 

    Recurring operating income for the Houses totaled €3,367.1 million in 2020, resulting in a recurring operating margin of 26.6%. 




    Gucci: solid performances and fundamentals 



    Gucci posted revenue of €7,440.6 million in 2020, down 22.7% as reported and 21.5% on a comparable basis. Sales generated in directly operated stores fell 19.5% on a comparable basis, with a significant improvement in the second half (down 5.9%). Despite the store closures resulting from the pandemic, Gucci recovered a robust and encouraging sales momentum with local customers, especially in Mainland China, which benefited from repatriation of demand. Online sales continued to enjoy fast-paced growth, up nearly 70% for the year. Wholesale revenue dropped 33.4% based on a comparable basis, reflecting Gucci’s strategy of continuing to enhance its distribution network’s exclusivity. 

    In the fourth quarter, revenue was down 10.3% on a comparable basis, including a 7.5% decrease for the retail network. 

    Gucci’s recurring operating income in 2020 totaled €2,614.5 million. Recurring operating margin was extremely resilient, at 35.1% for the year, reaching 38.6% in the second half, while the House pursued its investments.



    Yves Saint Laurent: resilience and return to growth in the second half



    Yves Saint Laurent posted revenue of €1,744.4 million in 2020, down 14.9% as reported and 13.8% on a comparable basis. After a sharp contraction in the first half, the House’s revenue returned to growth in the second half, growing by 2.1% on a comparable basis. In the full year, revenue from directly operated stores retreated 13.4% on a comparable basis, while online sales surged, up nearly 80%, and wholesale revenue dropped 13.7% on a comparable basis.

    Yves Saint Laurent put in a solid performance in the fourth quarter (up 0.5% on a comparable basis), with favorable sales momentum in Asia-Pacific, North America and Japan.

    Recurring operating income totaled €400.0 million in the year, yielding a recurring operating margin of 22.9%.



    Bottega Veneta: a remarkable year fueled by an exceptional creative drive



    Bottega Veneta posted revenue of €1,210.3 million in 2020, up 3.7% as reported and 4.8% on a comparable basis. After a mixed first-half performance, sales in the second half were strong, up 18.0% on a comparable basis. Comparable revenue in directly operated stores contracted 5.3% in the full year but rose 7.2% in the second half, buoyed by robust sales momentum in the Asia-Pacific region as well as by e-commerce. Wholesale grew sharply (up 48.5%), thanks to the successful collections of the House which remains very exclusive in its selection of wholesale partners. 

    Trends were positive in all distribution channels in the fourth quarter, with revenue up 15.7% on high bases of comparison. 

    Bottega Veneta posted recurring operating income of €172.0 million for 2020 for a recurring operating margin of 14.2%. The House delivered recurring operating income growth of 15.4% in the second half of the year.



    Other Houses: excellent momentum in the Couture & Leather Goods Division



    Revenue of the Other Houses totaled €2,281.3 million in 2020, down 10.1% as reported and 9.4% on a comparable basis. Balenciaga and Alexander McQueen delivered highly satisfactory performances, posting 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 sharply 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% lower, while wholesale revenue shrank 13.0%. 

    Sales in the fourth quarter posted solid growth (up 1.7% on a comparable basis), buoyed by double digit growth in the Couture & Leather Goods Division.

    Recurring operating income for the Other Houses totaled €180.6 million in the year, yielding a recurring operating margin of 7.9%.



    Corporate and other



    The Corporate and other segment delivered €423.6 million in sales, including €398.6 million for Kering Eyewear after eliminating intra-group sales and royalties paid to the Houses.

    Kering Eyewear had total sales of €487.1 million in 2020, down 17.6% on a comparable basis. After being hard hit by store closures in the first half, particularly in travel retail, revenue recovered in the second half, with a decline of 8.6%.

    Net expenses of the Corporate and other segment totaled €231.9 million in 2020, an improvement of €31.8 million year on year, thanks mainly to Kering Eyewear, which delivered positive and higher recurring operating income in the year.



    Financial performance



    In 2020, other non-recurring operating income and expenses represented net income of €163.0 million, including on the one hand the capital gain on the sale of the Group’s 5.83% stake in PUMA in October 2020, and on the other hand asset impairment charges.

    Net finance costs amounted to €341.7 million. This total includes the cost of net debt, which amounted to €43.3 million, 17.2% lower than in the same period of 2019. 

    Kering’s effective tax rate in 2020 was 25.7%, while its effective tax rate on recurring income remained stable year on year, at 28.1%.






    At its February 16, 2021 meeting, the Board of Directors decided to ask shareholders to approve a €8.00 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.
    An interim cash dividend of €2.50 per share was paid on January 21, 2021 pursuant to a decision made by the Board on December 10, 2020.
    The balance of the dividend for 2020 will be submitted for shareholder approval at the forthcoming Annual General Meeting to be held on April 22, 2021.







    Positioned in structurally fast-growing markets, Kering enjoys very solid fundamentals and a balanced portfolio of complementary, high-potential brands with clearly focused priorities. The Group’s strategy is focused on achieving same-store revenue growth while ensuring the targeted and selective expansion of the store network in order to sustainably grow its Houses, strengthen the exclusivity of their distribution and consolidate their profitability profiles. The Group is also proactively investing to develop cross-business growth platforms in the areas of e-commerce, omni-channel distribution, logistics and technological infrastructure, expertise, and innovative digital tools.

    The health and subsequent economic crises caused by the COVID-19 pandemic in 2020 have had major consequences on consumption trends, tourism flows and global economic growth. Along with the luxury sector, the Group was deeply impacted by the effects of the pandemic on its customers and its business operations, primarily in the first six months of the year. More favorable trends emerged in the second half, although these remain closely linked to developments in the health situation and associated restrictions across countries and regions.

    Against this backdrop, Kering has taken all necessary measures to adapt its cost base, limit the decline in its profitability and preserve its cash flow generation, while maintaining the expenditure and investments required to protect its Houses’ market positions and ensure their potential to bounce back. Kering also continues to resolutely pursue its strategy and will continue to manage and allocate its resources in order to support its operating performance, maintain high cash flow generation and optimize return on capital employed.

    Thanks to its strong business model and structure, along with its robust financial position, Kering remains confident in its growth potential for the medium and long term.  While the current environment remains subject to a number of uncertainties, the crisis has not called into question the structural growth drivers of the worldwide luxury market, fully validating the pertinence of Kering’s strategy and enabling the Group to emerge stronger from the crisis. 





    At its meeting on February 16, 2021, the Board of Directors, under the chairmanship of François-Henri Pinault, approved the consolidated financial statements for 2020. The consolidated financial statements have been audited and the certification is in progress.




    About Kering


    A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination”. In 2020, Kering had over 38,000 employees and revenue of €13.1 billion.



    Emilie Gargatte +33 (0)1 45 64 61 20

    Marie de Montreynaud +33 (0)1 45 64 62 53 


    Claire Roblet +33 (0)1 45 64 61 49

    Laura Levy +33 (0)1 45 64 60 45 


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