Updated Gucci glitter makes a parent Kering Shine

  • Updated Gucci glitter makes a parent Kering Shine
    Independent.t. E.
    18th-century English poet believed that fashion was stupid child ” and ” guide for fools, but he also believed that no one would pay any attention to his wise words.

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18th-century English poet believed that fashion was stupid child ” and ” guide for fools, but he also believed that no one would pay any attention to his wise words.

Of course, he is 100pcs. People can’t seem to have enough luxury in my life and always will somehow find the money for the goods that their friends and neighbors privately characterize as a very prestigious consumption.

I would not have been the most loyal “brand”, but as an investor, I’m lost in admiration at how money can be made on the luxury market, in particular, our goal of the company today, the French giant Kering,

Kering may be an unfamiliar name (they thought it was four years ago), but the brands behind it are completely new.

It has a portfolio of products such as jewelry, watches, leather goods, shoes and pret-a-porter clothing brands such as Gucci, Yves Saint Laurent, Balenciaga, Brioni and boucheron. The company has revenues of €15.5 billion, employs more than 40,000 people and is valued on the market at €58млрд.

The group had a strange start in life. Based in Brittany, it was the brainchild of Francois Pinault, who was in the timber trading business.

She went through a number of stages, including spells at the head of the famous Parisian Department stores printemps and mail order retail outfit La redoubt.

Even today, the family company, Pinault, Artemis, owner of the auction house Christie’s, winery château Latour and publisher of Le point.

Kering has embarked on a path of luxury in the beginning of the Millennium, buying Gucci in fierce clashes with lvmh (the rivalry, which still prevails). He began to accumulate all the “names” that could bring a smile even to the least demanding wife/girlfriend/ mother or grandmother.

Along with the above-mentioned fashion brands, it also owns Italian leather goods manufacturer Bottega Venta is the Italian jewelers pomellato and the Swiss watchmaker Ulysse Nardin. It was too small of asset disposal. He sold the brand of Stella McCartney fashion and sportswear Puma assets and size.

Without examination Kering is complete without looking at its star brand, revenue and profit engine Gucci. The brand saw a sharp reversal of fortune in recent years. Until two years ago he was regarded as perhaps a little tired. To arrest the problems of the group appointed Marco Bizarri, previously business consultant, General Manager.

Since his appointment Bizarri offers to rewrite the strategy for the 97-year-old brand. He focused on creativity and digital media, pushing marketing and merchandising in the minor roles. For creativity he surprised the industry by appointing a member of a team of designers as Gucci, Alessandro Michele. The pair revived the brand, with revenues last year of €6.2 billion to €3.9 billion three years ago. The brand also accounts for 60pc of the profit of Kering, which is not surprising, with sling-back shoes selling for €750 a pair and denim jackets to €3,000 apiece.

The strategy of Kering to be pure luxury, the group pays dividends. Last year the results were sparkling.

Revenue of 15.5 billion euros was his best over the last five years and the first quarter of this year, revenue grew by more than a third.

Operating profit of almost €3bn doubling its performance in 2010 helped by removing the lower border of the business.

Over the past two years the company’s net debt was reduced by € 1 billion. The group reported double digit growth in all geographic areas, North America and Asia outstanding regions. He continues to benefit from strong demand from China. Shares are not cheap, trading at €453 per share, but it was the second best performer on the French stock exchange.

Its price earnings multiple is 26. The majority of brands, Kering is well helps the Gucci brand in the Chinese market.

The improvement in the group’s balance sheet gives it the firepower for further acquisitions, but with trade tensions in relations between the US and China any signs of slowing down and could dampen the prospects of luxury and have negative consequences.

Nothing in this article shall not be construed as a recommendation, Express or implied, to purchase any of the shares.

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