Home / Knowledge / News / Fashion / Bearish demand pulls down 2014 operating profit at Kering
Bearish demand pulls down 2014 operating profit at Kering
23
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

Courtesy: Amazon

Apparel/Garments | On 23rd Sep 2018

Consumers in Turkey get access to Amazon

Amazon has launched in Turkey giving customers in the country...

Value in omni-channel retail with Flipkart buying: Walmart

Apparel/Garments | On 23rd Sep 2018

Value in omni-channel retail with Flipkart buying: Walmart

With the acquisition of Flipkart, Walmart sees great value in...

E-com to result in common SE Asian consumer market: BCG

Textiles | On 23rd Sep 2018

E-com to result in common SE Asian consumer market: BCG

The rapid spread of e-commerce and digital technologies is binding...

Interviews View All

Nitin Soni, Dolphin Jingwei Machines

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Manuj Terapanthi, Texaura

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Harmeet Singh,

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

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


September 2018

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

news category


Related Categories:

Advanced Search