// French luxury group Kering revenue drops 17.5% to £11.4bn in 2020
// Total sales dropped 15.9% year on year, while online sales were up 67.5% over the year
// Group net profits were down 6.9% to £1.9bn in the period
Gucci owner Kering has reported a revenue decline of 17.5 per cent to €13.1 billion (£11.4 billion) in 2020, as store closures and the collapse in tourism affected trading.
The French luxury group has seen total sales drop 15.9 per cent year on year, while online sales – which account for 13 per cent of total sales – were up 67.5 per cent over the year.
Gucci reported a sales decline of 22.7 per cent to €12.7 billion (£11 billion), Yves Saint Laurent fell 14.9 per cent to €1.7 billion (£1.5 billion), and other houses were down 10.1 per cent to €2.3 billion (£2 billion).
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However, Bottega Veneta’s sales increased 3.7 per cent to €1.2 billion (£1 billion) during the year, buoyed by momentum in the Asia-Pacific region, as well as by ecommerce.
Group net profits were down 6.9 per cent to €2.15 billion (£1.9 billion) in the period, while EBITDA fell 34.9 per cent to €4.6 billion (£4 billion).
“In a year of disruption, Kering demonstrated remarkable resilience and agility,” Kering chairman and chief executive François-Henri Pinault said.
“We achieved a solid top-line recovery in the second half, we protected our margins while continuing to invest in our Houses and growth platforms, our cash flow generation remained elevated, and we further strengthened the group’s financial structure.
“I am proud of the solidarity our group has shown in this unprecedented environment. More than ever, I am convinced that our strategy and business model are perfectly in sync with the current and future trends of the luxury universe.
“We are emerging from the crisis stronger and better positioned to leverage the rebound. We invest in all our brands to maximise their potential, and to resume our profitable growth journey.”