Luxury giant Kering achieved revenue of 17,645 million euros in 2021, up 35 percent on a comparable basis compared to 2020 and up 13 percent from 2019.
Recurring operating income rose 60 percent relative to 2020 to reach 5,017 million euros, while recurring operating margin reached 28.4 percent. Net income attributable to the group was 3,176 million euros.
The group, which owns brands Gucci, Yves Saint Laurent and Bottega Veneta, has recommended an ordinary dividend up 50 percent to 12 euros per share.
“Thanks to their ability to blend authenticity with bold creativity, all our Houses achieved a sharp sales rebound, way beyond their 2019 levels, while reinforcing the exclusivity of their distribution and further enhancing their brand equity,” said Kering chair and CEO François-Henri Pinault in a statement.
“We expanded our team of talented people around the world, and I am sincerely grateful for the remarkable accomplishments of all our colleagues,” he said.
Highlights of Kering’s financial performance
The company said growth was driven by outstanding performances from all Houses, which generated revenue of 17,019 million euros, up 34 percent as reported and up 35 percent on a comparable basis.
In the retail network including e-commerce, revenue was 40 percent higher than in 2020 on a comparable basis, supported by a sharp rebound in all regions, and 18 percent higher than in 2019. Sales growth accelerated in the fourth quarter of 2021, rising by 39 percent relative to 2020 and 34 percent relative to 2019 on a comparable basis.
Online sales continued to grow and were up 55 percent. The online channel’s penetration rate doubled in two years, and it now accounts for 15 percent of total sales in the retail network.
The company added that wholesale revenue was up 17 percent on a comparable basis year-on-year. Relative to 2019, it was down 3 percent.
Gucci drives growth at Kering
In 2021, Gucci’s revenue amounted to 9,731 million euros, up 31 percent both as reported and on a comparable basis, exceeding the 2019 pre-Covid level. Sales generated in the retail network grew 37 percent on a comparable basis compared to 2020, and by 10 percent relative to 2019. As part of the overhaul of Gucci’s distribution, wholesale revenue fell 10 percent year-on-year and 39 percent relative to 2019.
In the fourth quarter of 2021, Gucci’s revenue growth accelerated by 32 percent and 18 percent compared to the same period of 2019. Sales from directly operated stores rose by 35 percent relative to the fourth quarter of 2020 and by 25 percent versus the same period in 2019.
Yves Saint Laurent’s 2021 revenue amounted to 2,521 million euros, an increase of 45 percent as reported and 46 percent on a comparable basis. Sales from directly operated stores grew by 55 percent compared to 2020 and 35 percent over two years. Wholesale revenue was 23 percent higher than in 2020 and 6 percent higher than in 2019. In the fourth quarter, revenue growth accelerated 47 percent on a comparable basis. Sales from directly operated stores rose by 61 percent relative to the same period in 2019.
Bottega Veneta’s annual revenue exceeded 1.5 billion euros. Revenue grew 24 percent as reported and 25 percent on a comparable basis, and was up 32 percent on a comparable basis relative to 2019. Sales from directly operated stores rose 29 percent on a comparable basis. Wholesale revenue was up 16 percent on a comparable basis. In the fourth quarter, revenue rose 14 percent on a comparable basis and 31 percent relative to the same period in 2019.
Kering’s other Houses generated revenue of 3,264 million euros, up 43 percent as reported and 44 percent on a comparable basis, around 1 billion euros in additional revenue compared to 2020. Sales from directly operated stores rose 46 percent and were up 40 percent compared to 2019. Wholesale revenue rose by 40 percent relative to 2020. Fourth-quarter sales were up 34 percent on a comparable basis, with sales from directly operated stores up 60 percent.
In 2021, revenue from the Corporate and other segments totalled 626 million euros, an increase of 48 percent as reported and 43 percent on a comparable basis.