Kering mentioned Wednesday that it’s assured of additional progress within the yr forward and that it’s going to increase its dividend for 2022, regardless of a tricky finish to the yr that noticed a drop in gross sales at its core model Gucci.
Fourth-quarter income on the French luxury-goods group
KER,
fell 7% on a comparable foundation to EUR5.28 billion ($5.67 billion), simply wanting analysts’ expectations for EUR5.48 billion, in line with a FactSet-compiled ballot.
For the complete yr, income was EUR20.35 billion, up 9% organically.
Gucci, which contributes a majority of group income, booked a 14% drop in fourth-quarter gross sales, Kering mentioned, pointing to the state of affairs in China, the place strict pandemic measures remained in place within the quarter. Other homes, together with Yves Saint Laurent and Bottega Veneta, offset this with rising gross sales within the interval, Kering mentioned.
Recurring working revenue climbed 11% to EUR5.59 billion for the yr, regardless of a decrease margin at 27.5%. Gucci’s margin, notably, slipped to 35.6%, amid excessive funding geared toward nurturing future progress, Kering mentioned.
Kering mentioned it’s assured of worthwhile progress in 2023, regardless of the difficult finish to 2022 and an surroundings of financial and geopolitical uncertainty. In China, an finish to strict pandemic measures led to a really encouraging begin to the yr within the nation, finance chief Jean-Marc Duplaix mentioned in a convention name forward of the outcomes.
For 2022, Kering will suggest a complete dividend of EUR14 a share, up from EUR12 beforehand, with the ultimate dividend to be paid in May.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
Source web site: www.marketwatch.com