Kering Net Slumps 95.2% in 2013

The French conglomerate cites heavy costs related to exiting its remaining retail businesses.

François-Henri Pinault

PARIS — Exiting its last remaining retail businesses weighed heavily on Kering’s 2013 results.

The French group, whose stable of brands includes Gucci, Bottega Veneta, Christopher Kane and Puma, reported a 95.2 percent drop in net profit in 2013.

The net totaled 50 million euros, or $66.4 million, versus 1.05 billion euros, or $1.35 billion, the previous year. The decline reflects a net loss of 256 million euros, or $339 million, related to the disposal shares in its books, music and electronics chain Fnac, and a net expense of 562 million euros, or $746 million, related to the catalog retailer Redcats.

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Kering said full-year revenue was largely flat, up 0.1 percent, from 9.74 billion euros, or $12.52 billion, to 9.75 billion euros, or $12.95 billion. Strength in its luxury division — with Saint Laurent revenues surging 17.8 percent last year — was dented by weakness at Puma, the core property in its nascent sport/lifestyle business division.


Recurring operating income fell 2.3 percent from 1.79 billion euros, or $2.3 billion, to 1.75 billion euros, or $2.32 billion.

All dollar rates are calculated at average exchange rates for the period concerned.


Shares in Kering slipped 2.5 percent in early trading on the Paris Bourse on Friday.

In the fourth quarter, sales edged down 0.6 percent to 2.55 billion euros, or $3.47 billion, from 2.56 billion euros, or $3.32 billion, a year ago. At comparable scope and exchange rates, this represented a rise of four percent.

Sales at its cash cow Gucci brand slipped 5.5 percent in the fourth quarter, a slim 0.2 percent improvement at comparable exchange rates.

Commenting on the results, Kering chairman and chief executive officer François-Henri Pinault
“We are confident in our ability in 2014 to improve on last year’s revenue and recurring operating income performances.”