Luxury goods group Kering has reported full-year consolidated revenue of €15,883.5 million for 2019, up by +16.2% year-on-year on a reported basis and by +13.3% on a comparable basis.

EBITDA climbed by +18.3 to €6,023.6 million, though net income fell by -37.4% to €2,308.6 million. This was attributed to a non-recurring tax settlement expense and the comparison with 2018 which had a sizeable net gain following Puma’s exit from the group.

Kering revenues passed €15 billion and operating income margin reached 30% for the first time (click to enlarge)

Highlights included strong and sustained growth at Gucci, where revenue climbed by  +13.3% on a like-for-like basis (+16.2% reported) and operating income leapt by +19.8%. The brand accounts for over 60% of group revenue.

How each brand or segment contributed to the performance and (below) the Luxury Houses comparable revenue growth by region and channel (click to enlarge)

Yves Saint Laurent delivered revenue growth of +14.4% on a comparable basis and +17.4% reported, with operating income up +20%. Bottega Veneta grew by +2.2% on a comparable basis and +5.3% reported in revenue terms, with operating income down -14.3%.

The ‘Corporate and other’ segment reported 2019 revenue of €500.9 million, reflecting strong momentum at Kering Eyewear, up +18.2% on a comparable basis, which contributed €474 million to consolidated revenue after eliminating intra-group sales and royalties paid to the Group’s Houses (€596 million including these items). In 2019, Kering Eyewear’s performance was fuelled by its Gucci, Cartier and Saint Laurent licences, as well as by the recently acquired Montblanc and Balenciaga licences.

Corporate revenue was driven by Kering Eyewear, which delivered double-digit growth across channels and geographies (click to enlarge)

Across the year, total revenue from the Luxury Houses topped the €15 billion mark, coming in at €15,382.6 million, up +16.1% as reported and +13.2% on a comparable basis, on top of high bases of comparison, particularly at Gucci.

Sales in directly operated stores and online advanced +14.0% on a comparable basis, propelled by strong performances from Gucci, Yves Saint Laurent, Balenciaga and Alexander McQueen. Online sales surged +22.6% year-on-year.

By region, Asia Pacific grew +20.4% despite political tensions and disruptions in Hong Kong in the second half of 2019, which impacted the business. Western Europe posted double-digit growth each quarter, with an overall progression of +13.7% over the year. North America and Japan were up +6.7% and +5.9%, respectively.

The rise of the online channel at Kering (click to enlarge)

Chairman and Chief Executive Officer François-Henri Pinault commented: “Kering delivered another year of sustained profitable growth in 2019, as total revenues significantly exceeded the 15 billion-euro mark and our recurring operating margin topped 30% for the first time ever.

“In the challenging period China is facing right now, we want to express once again our support to all our colleagues and our solidarity with the Chinese people.

“These particularly uncertain conditions don’t call into question Kering’s fundamentals in the luxury industry. Thanks to the strength of our model, the talent and dedication of our 38,000 people sharing a culture of creativity and responsibility, and to our disciplined financial stewardship, we are confident in our growth potential in the medium and long term.”

A snapshot of the overall performance in revenue reported terms (click to enlarge)