Kering, the French luxury group, is yet another retailer that has been massively hit by the pandemic. Its 2020 numbers distinctly state its dismal performance.
The retailer saw its consolidated revenue for the whole year drop by 17.5 per cent to post €13.1 billion. Expectedly, most of the damage was done in the first half.
The first 6 months witnessed a massive fall of 30.2 per cent in sales and the retailer has attributed this to travel restrictions as well as frequent store closures everywhere.
However, the second half saw sharp rebound with the sales falling only by 3.3 per cent – all thanks to reopening of stores and ease in lockdown restrictions in many parts of the globe.
Gucci, one of the reputed brands of Kering, also saw its revenue decline in 2020 by 22.7 per cent, with the Q4 fall being 10.3 per cent.
The only silver lining in the cloud for the retailer was its impressive online performance. The annual online growth posted by Kering has been an impressive 67.5 per cent.
Talking about its recovery in the second half, François-Henri Pinault, Chief Executive, Kering, said that the company protected its margins in the second half, while continuing to invest in its houses and growth platforms and keeping its cash flow generation elevated.
Last month, Kering was also named the most sustainable apparel and accessory firm in the Corporate Knights’ Global 100 Index.
