Luxury conglomerate Kering registers 95.2 % Decline in Net Profits
Kering, the French luxury conglomerate that represents brands including Gucci, Bottega Veneta, Stella McCartney, Alexander McQueen and Christopher Kane, reported a 95.2 % drop in net profit in 2013. But all is not as gloomy as it first seems.
Strength in its luxury division, with Saint Laurent revenues gaining 17.8 % last year, so the company refocused its attention on the luxury fashion market over the past 12 months, disposing of its interest in non-fashion, lower-end retailers. Although the group’s most lucrative brand, Gucci, saw fourth quarter sales slip 5.5 % and also Puma, the core property in its sport/lifestyle business division saw their sales drop.
The profit decline reflects a net loss of € 256 million from disposal shares of books, music and electronics chain Fnac, and a net expense of € 562 million related to the catalogue retailer Redcats.
“We are confident in our ability in 2014 to improve on last year’s revenue and recurring operating income performances,” Kering chairman and CEO François-Henri Pinault said. Shares in Kering fell 2.5 % in early trading on the Paris Bourse on Friday.
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