Kering Shares Jump 5% as Q4 Revenue and Earnings Beat Estimates

Luxury Boom? Kering Shares Jump, Boosting Investor Confidence

Following the luxury goods group’s fourth-quarter revenue and earnings that exceeded analysts’ projections, Kering shares surged more than 5% on Tuesday, offering investors some respite from the ongoing difficulties at flagship brand Gucci. The company reported €4.39 billion in revenue for the fourth quarter, which was 4% higher organically and higher than the average forecast. Kering’s EBIT was just over estimates for the entire year, coming in at €2.55 billion with a margin of 14.9%. The second-half EBIT of €972 million for the group exceeded projections by 7%.

Gucci’s Q4 Sales Drop 24%, but Kering’s Other Brands Outperform

The biggest brand owned by Kering, Gucci, reported a 24% drop in organic revenue for the fourth quarter. That was somewhat below projections but indicated an improvement over the prior quarter when sales plunged 26%. With the aid of new leather goods lines, Gucci’s retail sales fell 21%, indicating a little recovery in North America and Asia-Pacific. However, RBC analysts pointed out that there was a disparity in relative performance because Gucci’s performance gain was not as noticeable as that of some of its competitors.

Other Kering brands reported better-than-expected profits in spite of Gucci’s difficulties. Saint Laurent’s fourth-quarter revenue fell 8% organically, which was less than the 11% decline that was predicted. With the help of updated versions of its iconic handbags, the company witnessed especially strong growth in North America and Asia-Pacific.

Driven by robust retail demand, Bottega Veneta produced an impressive performance, with revenue climbing 12% organically—nearly twice the average projection of 6%. In contrast to forecasts of an 11% loss, the group’s “Other Houses” sector, which includes Alexander McQueen and Balenciaga, witnessed an organic decline of 4%.

For more up-to-date crypto news, you can follow Crypto Data Space.