Gucci and YSL deliver exceptional annual growth

Worldwide
Published:  13 February, 2019

In 2018, luxury fashion labels Gucci and Saint Laurent recorded a +36.9% and +18.7% increase in revenues, respectively, compared with the previous year, while revenues for Bottega Veneta were down -3.4% on a comparable basis, pending the inaugural collections from the new Creative Director.

Kering’s consolidated revenue in 2018 increased +29.4% on a comparable basis to €13,665.2 million, driven by all regions. Recurring operating income is reported to have doubled over the past two years, with the French luxury conglomerate also posting a sharp rise in recurring operating margin at 28.9%. “Once again, we significantly outperformed our sector. In an environment that was generally favourable but grew increasingly complex, Kering generated €2.8 billion in incremental revenues and €1.3 billion in additional EBIT compared with 2017”, said François-Henri Pinault, Chairman and CEO, Kering. Net income Group share rose +108.1% to €3,714.9 million in 2018, while earnings per share (EPS), stood at €29.49, up from €14.17 in 2017.

Gucci’s revenue topped €8 billion in 2018, rising +33.4% as reported and +36.9% on a comparable basis to €8,284.9 million, reflecting “healthy and balanced growth in all regions, product categories and client segments”. The label’s recurring operating income in the year totalled €3,275.2 million, up +54.2%. Another growth driver was Yves Saint Laurent, whose 2018 sales rose +18.7% on a comparable basis and +16.1% as reported. Recurring operating income at Yves Saint Laurent was +21.9% higher as reported at €459.4 million, while recurring operating margin exceeded 26%.

Bottega Veneta’s revenue in 2018 was down -3.4% on a comparable basis and +5.7% as reported, while recurring operating income was -17.7% lower year-on-year at €242 million. Revenue from Kering’s other brands passed the €2 billion mark in the year, totalling €2,109.2 million, up +29.8% as reported and +32.1% on a comparable basis. “This excellent performance was led by Couture & Leather Goods, while Watches & Jewellery also posted solid revenue growth”, said Kering, adding that in Couture & Leather Goods, all product categories posted revenue growth in the year. Sales of the Watches brands are said to have advanced for the second year in a row.