Gucci full year earnings better than expected
Gucci, the world’s third largest luxury goods group has announced a smaller than expected drop in its fourth quarter and full year earnings, for the period ended
Gucci, which is 61%-owned by French firm, Pinaut Printemps Redoute, posted a 27% decline in full year profits to Eur226.8 million ($154 million). The figure, however, is ahead of analysts forecasts of Eur213 million. Full year sales remained flat at Eur2.54 billion, while Q4 sales increased 1.6% to Eur714.8 million.
The group’s Gucci division, which accounts for the bulk of profits with its luxury leather goods and handbag collections, saw full year profits decline 13.5% and sales decrease 9.6% Eur1.53 billion.
Meanwhile, the company’s Yves Saint Laurent (YSL) label performed exceptionally well and increased full year sales 75.3% to Eur83 million, while leather goods revenues rose 270%. YSL Q4 revenues rose 34.5% to Eur41.7 million.
Gucci, which also owns the Alexander McQueen and Stella McCartney labels, says it is confident it can turn around its loss making divisions, but said business will not improve until after the war on
Domenico De Sole, president and CEO said: “Investment this year has focused on developing our brands. I am pleased by our achievements, particularly the group’s resilient performance in the face of a slower consumer demand, increased political uncertainty and a weak global economy.”
