- Kering‘s total revenue for Q4 was EUR 4.39 billion, a decrease of 12% year-over-year, but exceeded the estimate of EUR 4.24 billion.
- Gucci’s revenue on a comparable basis fell by 24%, missing the estimate of a 22% decline; the reported number was EUR 1.92 billion, slightly below the estimated EUR 1.95 billion.
- Yves Saint Laurent’s revenue decreased by 8% on a comparable basis, performing slightly better than the expected 10.2% decline; actual revenues were EUR 770 million, above the EUR 738.2 million estimate.
- Bottega Veneta saw a 12% increase in revenue on a comparable basis, surpassing the 4.91% growth estimate; revenue was EUR 480 million, exceeding the EUR 452.1 million estimate.
- The “Other Houses” segment’s revenue dropped by 4.1% on a comparable basis, but outperformed the expected 12% decline; actual revenue was EUR 818 million, higher than the EUR 786.3 million estimate.
- Eyewear & corporate revenue increased by 10% on a comparable basis, surpassing the 6.14% estimate, with actual revenue of EUR 434 million, above the predicted EUR 405 million.
- For the full year 2024, Kering‘s comparable revenue decreased by 12%, slightly underperforming the estimate of an 11.6% drop.
- The overall annual revenue was EUR 17.19 billion, down 12% year-over-year, but above the expected EUR 17.01 billion.
- Recurring operating income fell 46% year-over-year to EUR 2.55 billion, but exceeded the EUR 2.48 billion estimate.
- Gucci’s recurring operating income declined by 51% to EUR 1.61 billion, slightly above the expected EUR 1.59 billion.
- Yves Saint Laurent’s recurring operating income dropped 39% to EUR 593 million, closely aligning with the EUR 599.5 million estimate.
- Bottega Veneta reported a recurring operating income of EUR 255 million, a decrease of 18% but better than the EUR 244.3 million estimate.
- The “Other Houses” segment shifted from a profit of EUR 212 million to a loss of EUR 9 million, which was better than the estimated EUR 49.2 million loss.
- Recurring operating margin shrank to 14.9% from 24.3% year-over-year, slightly better than the estimated 14.7%.
- EBITDA was EUR 4.67 billion, a reduction of 29% year-over-year, but exceeded the forecast of EUR 4.16 billion.
- EBITDA margin decreased to 27.1% from 33.6% year-over-year, still above the predicted 25.1% margin.
- Net income was EUR 1.13 billion, marking a 62% decrease year-over-year and falling short of the estimated EUR 1.31 billion.
- The dividend per share was EUR 6, below the estimated EUR 6.53.
- Kering aims for a profitable long-term growth trajectory.
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Kering on Smartkarma
Analysts on Smartkarma have varying views on Kering, the luxury house known for brands like Gucci and YSL. According to Business Breakdowns, Kering has faced challenges but shows growth potential in beauty products. With Gucci contributing significantly to Kering‘s revenues and profits, a new designer aims to bring a more discreet luxury style. Kering, similar to LVMH, has a rich history dating back to regional businesses before focusing on luxury under Francois Henry Pinault’s leadership.
On the other hand, analyst Dimitris Ioannidis suggests a bearish outlook, mentioning that Kering could be directly deleted from the EURO STOXX 50 index due to falling below the exit threshold. Forecasted to be replaced by DSM-Firmenich, with a demand of $1.3B, Kering‘s supply is forecasted at $750M. While DSM-Firmenich is anticipated to be added as the highest-ranked non-constituent, Kering‘s potential deletion could impact the index constituents. Other potential replacements include Engie SA and Argenx SE, as Nokia OYJ and Volkswagen hover just above the exit threshold.
A look at Kering Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts from Smartkarma have assessed Kering‘s long-term outlook based on various factors, providing a comprehensive overview of the luxury and lifestyle giant. With a solid Dividend score of 4, Kering demonstrates a commendable ability to provide returns to its investors. However, its lower scores in Resilience and Momentum highlight potential areas of concern for the company’s future performance.
Kering, known for its iconic brands such as Gucci and Puma, has received mixed scores in Value, Growth, and Resilience. While the company’s strong Dividend score indicates stability, its lower Momentum score suggests a need for potential strategic adjustments to drive future growth. Overall, Kering‘s diverse brand portfolio positions it well in the luxury market, but ongoing attention to enhancing resilience and momentum may be crucial for its sustained success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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