Luxury goods group Kering has reported full-year results for 2020, with consolidated revenue of €13,100.2 million, down by -17.5% on a reported basis –(16.4% on a comparable basis). A strong second-half recovery, led by Asia Pacific and North America, helped improve the full-year financial picture.

Revenue generated by Kering’s major brand houses in 2020 amounted to €12,676.6 million, down -17.6% as reported and -16.5% on a comparable basis.

Kering said: “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.”

Group financial performance in 2020; click to enlarge

Overall, sales across the retail network fell by -15.9% on a comparable basis due to store closures and the halt in global tourism, but there was a sharp rebound in the second half, led by North America and Asia Pacific, as noted.

Gucci posted revenue of €7,440.6 million in 2020, down -22.7% as reported and -21.5% on a comparable basis. The company highlighted “a robust and encouraging sales momentum with local customers, especially in Mainland China, which benefited from repatriation of demand”.

Yves Saint Laurent posted revenue of €1,744.4 million in 2020, down -14.9% as reported and -13.8% on a comparable basis. Q4 (up +0.5% on a comparable basis) showed favourable sales momentum in Asia Pacific, North America and Japan.

Bottega Veneta posted revenue of €1,210.3 million in 2020, up +3.7% on a reported basis and +4.8% on a comparable basis. After a mixed first-half performance, sales in the second half were strong, up +18% on a comparable basis, with Asia Pacific and ecommerce contributing.

Revenue of the Other Houses totalled €2,281.3 million in 2020, down -10.1% (reported) and -9.4% on a comparable basis. Balenciaga and Alexander McQueen posted year-on-year revenue growth.

The jewellery houses, said Kering, were “penalised by their exposure to Western Europe but 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, said the company.

How the major brands and other divisions performed; click to enlarge

Kering Eyewear had 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%.

Online sales surged by +67.5% year-on-year and accounted for 13% of total sales generated through the retail network. Sales from wholesale fell -17.4% on a comparable basis.

The company highlighted its “resilient profitability”, with recurring operating income of €3,135.2 million (-34.4%), yielding a recurring operating margin of 23.9%. Net income from continuing operations fell -38.6% to €1,972.2 million.

Chairman and Chief Executive Officer François-Henri Pinault said: “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.

“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 maximise their potential, and to resume our profitable growth journey.”

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