Kering posts 35% growth in 2021 revenue driven by Gucci turnaround
Gucci’s sales climbed back above 2019 levels, a key milestone in the brand’s rebound from the pandemic.
French luxury group Kering posted sharp growth in annual revenue in 2021 to £14.7 billion (€17.6 billion), up 35% on a comparable basis to 2020, up 13% from 2019, driven by accelerated sales at its Gucci brand.
Growth was driven by outstanding performances from all houses owned by Kering, which generated revenue of £14.2 billion (€17 billion), up 34% as reported and up 35% on a comparable basis.
Gucci’s annual revenue amounted to £8.1 billion (€9.7 billion), up 31% on a comparable basis to 2019.
Kering’s annual net profit was in line with expectations at £2.67 billion (€3.2 billion).
The luxury group, which owns brands including Alexander McQueen, Balenciaga, Bottega Veneta, Gucci and Yves Saint Laurent, revealed that online sales continued to grow at an exceptional pace (up 55%) and now accounts for 15% of total sales.
In the fourth quarter of 2021, Gucci’s revenue growth accelerated sharply to 32% year-on-year and 18% compared to the same period of 2019, due to the success of its iconic lines, along with an intense schedule of events and new product launches. Sales growth rose by 39% relative to 2020 and 34% relative to 2019 on a comparable basis.
Yves Saint Laurent had a strong quarter, as revenue growth accelerated again to 47% year-on-year on a comparable basis. Sales from directly operated stores rose by 61% relative to the same period in 2019.
Revenue from the group’s other houses were up 34% on a comparable basis, with sales from directly operated stores accelerating sharply, up 60% year-on-year.
François-Henri Pinault, Kering’s Chairman and Chief Executive Officer, said: “Kering realized excellent performances in 2021, further consolidating its prominent position in the Luxury of the future. Thanks to their ability to blend authenticity with bold creativity, all our Houses achieved sharp sales rebound, way beyond their 2019 levels, while reinforcing the exclusivity of their distribution and further enhancing their brand equity.
“We expanded our team of talented people around the world, and I am sincerely grateful for the remarkable accomplishments of all our colleagues. We are working assiduously to meet our ambitious sustainability commitments. All our Houses are stronger than ever before, and we are confident we will extend last year’s momentum in 2022 and in coming years.”
