Gucci owner bags a stellar year outperforming pre-pandemic profits
The owner of brands including Gucci and Yves Saint Laurent announced that profit topped pre-Covid levels in 2021 as luxury designers craft a comeback.
The French firm Kering reported net profit of €3.2bn (£2.7bn) last year – up 37 per cent on 2019 – while revenues hit a record €17.6bn.
Gucci led the way, bagging sales of €9.7bn after a booming demand in the fourth quarter.
The Royal Bank of Canada rated Kering as an outperforming stock, with a €830 price target.
Brokers at the bank said this morning: “Kering’s strategic approach to developing its assets supported by a significantly improved central platform make it one of the strongest luxury conglomerates in the sector.”
They also added that 2022 would be a year that Gucci reaps the benefits of new designs, including the introduction of new handbag lines (eg, Diana Bamboo).
The strong figures from Kering are in line with the strong bounce-back from its rivals, like LVMH and Burberry.