Kering Group Reports Strong Momentum for Kering Eyewear in FY 2019

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PADOVA, Italy—Kering Group (PARIS: KER), the global luxury group overseeing fashion brands Gucci and Saint Laurent, among others, reported a 13.3 percent comparable sales gain on total revenues of €15,883.5 million in FY 2019, and the company also pointed out the "very strong momentum" of Kering Eyewear, which generated 2019 revenue of $500.9 million, an increase of 18.2 percent on a comparable basis. Reported within the luxury group's "corporate and other" segment, Kering Eyewear contributed €474 million to consolidated revenue after eliminating intra-group sales and royalties paid to the Group’s Houses (€596 million including these items).

In 2019, Kering Eyewear’s performance, the report noted, "was once again fueled by its Gucci, Cartier and Saint Laurent licenses, as well as by the recently acquired Montblanc and Balenciaga licenses."

Overall, the Kering Group year-end report reflected continued sustained growth of Gucci, up 13.3 percent in comparable sales, a strong revenue increase from Saint Laurent for the year, a return to growth for Bottega Veneta and a strong momentum in sales gains from Kering's other houses, citing Balenciaga and Alexander McQueen. Kering’s luxury brands did well in the Asia-Pacific region (up 20.4 percent) despite political tensions and disruptions in Hong Kong in the second half of 2019, which impacted the Group’s business. Western Europe posted double‑digit growth each quarter, with an overall progression of 13.7 percent over the year. North America and Japan were up 6.7 percent and 5.9 percent, respectively.

Kering Group chairman and CEO Fançois-Henri Pinault, chairman and chief executive efficer, commented,“Kering delivered another year of sustained profitable growth in 2019, as total revenues significantly exceeded the 15-billion-euro mark and our recurring operating margin topped 30 percent for the first time ever. We are pursuing the implementation of our strategy—we are focused on developing our Houses, executing flawlessly, and creating value.

"In the challenging period China is facing right now, we want to express once again our support to all our colleagues and our solidarity with the Chinese people. These particularly uncertain conditions don’t call into question Kering’s fundamentals in the luxury industry. Thanks to the strength of our model, the talent and dedication of our 38,000 people sharing a culture of creativity and responsibility, and to our disciplined financial stewardship, we are confident in our growth potential in the medium and long term,” he said.