Gucci loses its momentum in 2020

Worldwide
Published:  17 February, 2021
Gucci's Jackie 1961

Kering’s consolidated revenue in 2020 amounted to €13,100.2 million, down 17.5% as reported and 16.4% on a comparable basis.

Total revenue generated by Kering’s Houses in 2020 amounted to €12,676.6 million, down 17.6% as reported and 16.5% on a comparable basis. First-half sales were down 30.2% due to Covid-related issues, but the Group said the situation improved significantly in the second half (down 3.3%). In the retail network, comparable sales declined 15.9% over the year and were nearly stable in the second half; down 1.5%. Online sales were up 67.5% over the year and accounted for 13% of total sales generated by the retail network. Wholesale revenue was down 17.4% on a comparable basis. In the fourth quarter of 2020, total revenue generated by the Houses contracted 4.8% on a comparable basis, including a 2.9% decrease for the retail network. Recurring operating income for the Houses totaled €3,367.1 million in 2020, with a recurring operating margin of 26.6%.

Gucci posted revenue of €7,440.6 million in 2020, down 22.7% as reported and 21.5% on a comparable basis. Sales generated in directly operated stores fell 19.5% on a comparable basis, with a significant improvement in the second half; down 5.9%. Revenue for Yves Saint Laurent totalled €1,744.4 million in 2020, down 14.9% as reported. After a sharp contraction in the first half, the House’s revenue returned to growth in the second half ( +2.1% on a comparable basis). Bottega Veneta posted annual revenue of €1,210.3 million, up 3.7% as reported and 4.8% on a comparable basis. After a mixed first-half performance, sales in the second half increased 18% on a comparable basis. Revenue of the Other Houses totaled €2,281.3 million for the year, down 10.1% as reported and 9.4% on a comparable basis. According to Kering, Balenciaga and Alexander McQueen “delivered highly satisfactory performances”, posting year on-year revenue growth.

Credit: Yves Saint Laurent