FRANCE: Kering FY profit plummets on restructuring costs
French luxury goods group Kering has seen its full-year profit slide, hurt by costs related to the restructuring of its Puma sportswear brand and the disposal of its La Redoute mail order business.
The owner of the Gucci, Bottega Veneta and Yves Saint Laurent brands said net income tumbled to EUR49.6m (US$68m) during the full year, down from EUR1.05bn in the same period of the prior year.
Non-recurring expenses amounted to nearly EUR443m, which included EUR361m in asset impairment losses - of which EUR280m related to Puma - as well as EUR30m in restructuring costs.
Revenue edged up 0.1% to EUR9.75bn from EUR9.74bn. On a comparable basis, revenue rose 4%.
Sales at the company's luxury division increased 4.2% during the period, with sales at Bottega Veneta and Yves Saint Laurent up a respective 7.5% and 17.8%. Gucci, however, saw sales fall 2.1%. The sport and lifestyle division reported a 8.1% sales decline, with Puma suffering a 8.2% drop.
"As we had anticipated, results are lower in the sport & lifestyle division, amid major changes at Puma aimed at rebuilding the brand's commercial momentum," said chairman and CEO François-Henri Pinault.
"With a coherent international group of strong brands enjoying considerable organic growth potential, we are well positioned to press ahead with our strategy."
The company said it forecasts growth in revenue and operating income in 2014, which will include the relaunch of Puma.
"As a result, we are confident in our ability in 2014 to improve on last year's revenue and recurring operating income performances."
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