Kering said Wednesday that net profit dropped in 2020 as revenue was hit by store closures and a lack of tourism, but that performance recovered in the second half of the year.
Net income at the French luxury-goods conglomerate dropped to 2.15 billion euros (US$2.60 billion), from 2.31 billion euros in 2019. Analysts had forecast net income of 1.74 billion euros, according to a FactSet-compiled consensus of 11 analyst estimates, Marketwatch reports..
Revenue came to 13.10 billion euros, an 18 percent drop from 15.88 billion euros previously. Analysts had expected revenue of 13.26 billion euros, according to FactSet.
Revenue at key brand Gucci dropped by 23 percent on the year to 7.44 billion euros, including by 10 percent in the fourth quarter, while at the company’s houses overall it dropped by 4.8 percent in the quarter on a comparable basis, Kering said.
The company said it is confident in its medium- and long-term growth potential. The “less mature” brands such as Balenciaga and Bottega Veneta especially have good growth prospects, Chief Financial Officer Jean-Marc Duplaix said in a call with media.