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COVID-19 Impact · Kering · Luxury Goods · Sales Performance
Kering, owner of luxury brands like Gucci and Yves Saint Laurent, reported a 17.5% consolidated revenue drop to €13.1 billion in 2020 due to Covid-19 disruptions, but demonstrated a "solid" recovery in the second half with significant online growth.
The luxury goods giant experienced a 30.2% sales decline in the first half of 2020, primarily due to halted tourism and temporary store closures caused by Covid-19 lockdowns. However, the situation improved significantly in the latter six months, with sales only down 3.3%, driven by a sharp rebound in its retail network in North America and Asia-Pacific.
Online sales surged by 67.5% over the year. Gucci, Kering's flagship brand, saw its revenue decrease by 22.7% in 2020, including a 10.3% decline in the fourth quarter.
CEO François-Henri Pinault stated Kering showed "remarkable resilience and agility," protecting margins and strengthening its financial structure. The company believes the crisis has not undermined the structural growth drivers of the worldwide luxury market.
