The group Kering, the French luxury giant that owns Gucci, Yves Saint Laurent and Bottega Veneta, ended 2013 with a sharp drop in profits. Mainly due to restructuring charges, net profits fell to 50 million euros, against 1,048 billion in 2012, while recurring operating profit fell by 2,3%, to 1,75 billion euros, in line with market expectations.
In particular, Gucci, which is worth more than half of the group's capitalization, suffered a further slowdown in sales in the fourth quarter, recording a growth of 0,2%, from +0,6% in the previous quarter. Analysts had instead expected an improvement.
Kering CFO Jean-Marc Duplaix explained that Gucci suffered from a "fewer arrival of tourists to Europe" in the fourth quarter and added that it will take time to reposition the upmarket brand. Duplaix added that the Italian brand improved its position in China in the last quarter and that the operating margin rose slightly in the second half, to 31,9%, from 31,7% in the previous year.
Yves Saint Laurent instead it became Kering's fastest growing brand, with like-for-like revenues accelerating 42% in the fourth quarter alone and 21,6% overall in 2013. However, Kering's profitability was hit last year by the restructuring of its mail-order company La Redoute, which the group sold through a management buy-out to focus on luxury and sports brands.
