Home / Knowledge / News / Fashion / Bearish demand pulls down 2014 operating profit at Kering
Bearish demand pulls down 2014 operating profit at Kering
Feb '15
Reflecting lackluster demand, French luxury and lifestyle products marketer, Kering said its recurring operating profit fell around 5 per cent in 2014 from 2013.

In 2014, Kering reported a recurring operating profit of €1.66 billion as against €1.75 in 2013, down about 5 percent while its recurring net profit from operations fell 4.4 per cent to €1.2 billion.

Sales in the reporting grew 4 per cent to €10 billion driven by strong growth at its fashion brands Yves Saint Laurent and Bottega Veneta.

Revenues from the Yves Saint Laurent brand surged 27 per cent in 2014 from a year earlier, while profit zoomed 37 per cent year over year to €105 million.

However, earnings at its leather handbags brand, Bottega Veneta rose slower by 8 per cent to €357 million on sales of €1.1 billion.

2014 sales at the luxury goods marketer’s sportswear and lifestyle brands which accounted for a third of group sales climbed 3.5 per cent from the previous year to €3.2 billion.

At €1,991 million, EBITDA was 2.6 per cent lower than in 2013 at Kering and EBITDA margin inched down by 1.4 percentage points to 19.8 per cent in 2014 from 21.2 per cent in 2013.

Earnings per share from continuing operations touched €8.00 in 2014 as against €6.93 for the previous year.

Excluding non-recurring items, earnings per share from continuing operations amounted to €9.35, down 4.4 per cent from the 2013 figure.

In 2014, the cost of net debt amounted to €151 million, 13 per cent lower than in 2013, primarily due to a reduction in Kering's average cost of borrowing.

Due to the tax effect of a number of non-recurring operating income items recorded during the year, Kering's effective tax rate rose significantly in 2014 to 24 per cent, with recurring tax rate at 18.3 per cent.

In 2014, other non-recurring operating income and expenses represented a net expense of €112 million and primarily included the net gain on the disposal of a property complex and asset impairment losses.

CEO François-Henri Pinault said, “Sales growth and rise in operating income of the luxury division confirm the relevance of multi-brand model and demonstrates ability to unlock potential of each of our brands.”

“The transformations carried out in 2014 from both an organisational and operational standpoint has allowed us to step up our responsiveness, and achieve a greater degree of integration and specialisation,” he added.

“I am confident in the Group's ability to achieve sustainable profitable growth while focusing in the shorter term on our brands’ cash flow generation,” he observed. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Pic: Shutterstock

Textiles | On 10th Jul 2020

US, Kenya launch negotiations for free trade agreement

United States trade representative Robert Lighthizer and Kenya...

Pic: Shutterstock

E-commerce | On 10th Jul 2020

Commonwealth, ILO join partnership for inclusive e-com

The global 'eTrade for All' initiative, which aims at making digital...

Pic: Nike

E-commerce | On 10th Jul 2020

Nike Rise unveiled in Guangzhou as new store concept

Nike recently introduced Nike Rise, a first-of-its-kind store...

Interviews View All

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Karan Toshniwal, Orange O Tec

Karan Toshniwal
Orange O Tec

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

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Aaron Spivak,

Aaron Spivak

Canada-based Hush Blankets was founded by Lior Ohayon and Aaron Spivak to...

Alon Moshe,

Alon Moshe

Israel-based Twine Solutions is a technology start-up that has developed a ...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Amiben Shroff, Shrujan

Amiben Shroff

From its modest beginning in the late 1960s, Shrujan has grown into a...

Varsha Wadhwa, VW

Varsha Wadhwa

Coming from a family that ran a business of jute and linen mills since...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2020

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

Advanced Search