Home / Knowledge / News / Fashion / Kering group's revenue grows 16.2% in FY19

Kering group's revenue grows 16.2% in FY19

13
Feb '20
Pic: Gucci
Pic: Gucci
Kering, a global luxury group, posted 16.2 per cent growth in consolidated revenue to €15,883.5 million in FY19 compared to prior year. Total revenue posted by the luxury houses in the Q4 FY19 rose 11.6 per cent on a comparable basis. Recurring net income grew 15.1 per cent to €3,211.5 million. Gross margin increased 15.5 per cent to €11,775 million.
 
The group reported that this strong performance in FY19 that ended on December 31, 2019, was fueled by substantial growth across all regions.  
 
Sales in directly operated stores and online advanced 14 per cent on a comparable basis, propelled by very strong performances from Gucci, Yves Saint Laurent, Balenciaga and Alexander McQueen. Online sales surged 22.6 per cent year on year. 
 
Wholesale revenue in FY19 from the group's houses rose 10.4 per cent on a comparable basis. Kering's luxury houses put in an excellent showing in the Asia-Pacific region up by 20.4 per cent despite political tensions and disruptions in Hong Kong in the second half of 2019, which impacted the group's business. Western Europe posted double-digit growth each quarter, with an overall progression of 13.7 per cent over the year. North America and Japan were up 6.7 per cent and 5.9 per cent, respectively.
 
In the fourth quarter, directly operated store network continued a strong uptrend, with comparable sales up 12.3 per cent over the quarter, up double digits in all regions except Japan, which felt the impact of the increase in sales tax. 
 
Gucci generated an additional €1.3 billion in sales compared to 2018, with 2019 revenue at €9,628.4 million, up 16.2 per cent as reported. The very sustained 10.5 per cent growth in revenue in Q4 FY19 was fueled by the brand's growth momentum across regions and product categories. North America posted comparable revenue growth of 6.2 per cent on a comparable basis in the last three months of 2019 in directly operated stores. 
 
With 17.5 per cent growth in revenue in FY19 advancing to €2,049.1 million, Yves Saint Laurent confirmed its growth trajectory. Revenue from directly operated stores and online rose 15.7 per cent, on a comparable basis. The House confirmed its excellent momentum in Q4 FY19 with revenue up 14 per cent on a comparable basis attributable to strong performances in Western Europe and North America.
 
Bottega Veneta generated revenue of €1,167.6 million in FY19, up 5.3 per cent as reported. In Q4 its sales advanced 9.4 per cent fueled by strong momentum in both retail and wholesale channels.
 
Revenue generated by Kering's Other Houses totaled €2,537.5 million in 2019, up 20.3 per cent as reported. In Q4 FY19, revenue of the group's other houses rose 17.2 per cent as reported, fueled by solid momentum at Balenciaga and Alexander McQueen.
 
The corporate and other segment reported 2019 revenue of €500.9 million, reflecting strong momentum at Kering Eyewear. In 2019, Kering Eyewear's performance was once again fueled by its Gucci, Cartier and Saint Laurent licenses, as well as by the recently acquired Montblanc and Balenciaga licenses. 
 
The group reported in their outlook that it is continuing to implement Kering's strategy focused on achieving comparable revenue growth while ensuring the targeted and selective expansion of the store network in order to sustainably grow its houses and consolidate their profitability profiles.
 
The Group is also pro-actively investing to develop cross-business growth platforms in the areas of e-commerce, omni-channel distribution, logistics and IT infrastructure, expertise, and innovative digital technologies.

Fibre2Fashion News Desk (JL)


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Ajay Ghariwala, Luthra Group

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Erwin Devloo,

Erwin Devloo

Picanol develops, produces and markets high-tech weaving machines, based...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Luca Formentini,

Luca Formentini

From the very beginning, Loris Bellini's aim was to produce dyeing...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch, Schlegel und Partner GmbH

Silke Brand-Kirsch
Schlegel und Partner GmbH

<div>Schlegel und Partner is the market research and consultancy company...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search