Event in Progress:
Discover the latest content that has just been published on Research Tree
Kering reported Q1 22 figures with all the brands outperforming consensus except for the “most important”, Gucci, which has been significantly affected by the new waves of COVID-related lockdowns and restrictions in China. Like its industry rivals, Kering also said that it’s too early to assess the impact of inflation on luxury demand.
Companies: Kering (KER:EPA)Kering SA (KER:PAR)
Kering ended the year with both revenue and profitability beating consensus and our expectations. Gucci experienced a strong comeback with revenue jumping by 35% in Q4 21, nearly twice the consensus. The strong desirability of the Aria collection and increased investment communication during the year have borne fruit, thus, reassuring the market. The potential for new price hikes across all brands, elevated product ranges and a strong balance sheet enable the group to enter the FY22 in a bette
Kering has published its Q3 21 revenue, which was 10% ahead of its pre-pandemic level, mainly driven by the impressive growth at Saint Laurent. However, the re-imposed restrictions related to COVID-19 and a lack of newness between collections have weighed on Gucci’s performance, especially in Asia. Management has confirmed that the new Aria collection has started to improve the dynamics at Gucci. Gucci’s Q4 21 performance will be a decisive point to witness the appeal of the brand.
Kering experienced better-than-expected H1 21 results. Overall, the figures were good. The slight miss at Bottega Veneta has been fully offset by the accelerated momentum at Gucci and the increased brand attractiveness of YSL. However, Gucci’s profitability was lagging behind LVMH’s strong deliveries on Monday. The increased investment in commercial events and the brand have weighed on the margin. The accelerated top-line momentum across all brands and higher investments in brands should bear
Kering has released top-line growth of 25.8% for Q1 21, beating consensus expectations. All houses experienced a stronger-than-expected performance, highlighting the strong rebound at Gucci was very appreciable. Mainland China not only continued to lead the growth (at triple-digits), but the group also benefited from the buoyant consumer environment and larger online penetration in North America. The improved Gucci brand beat will enhance our confidence for the near term, but the valuation ga
Kering has reported worse-than-expected FY20 revenue. All brands experienced a less-than-expected performance during the last quarter of 2020. In particular, the higher exposure to tourism and the continued downstream optimisation have left Gucci’s performance trailing its industry peers. However, the fast-growing share of online business and the favourable geographic mix have not only maintained the profitability in line with market expectations, despite the underperformed top-line performance
Companies: Kering SA
Kering reported a less-than-expected Q3 20 sales decline, mainly driven by the impressive sales rebound in North America and continued good momentum in Asia. While Gucci was still considerably affected by the lack of tourism, both Saint Laurent and Bottega Veneta delivered outstanding trading performances. Despite the uncertainties related to the pandemic and the US election, we are now more confident about the outlook.
The group has reported better-than-expected H1 20 figures. The higher exposure to online distribution and wholesale has made Gucci and Bottega Veneta outperform peers in terms of top-line growth and profitability. The solid operating margin at Gucci (30.2%) has led the group to record a recurring operating income of €952m, 9% ahead of market expectations.
Kering recorded another strong year in 2019. Thanks to the less than expected growth slowdown at Gucci and the strong upside momentum at Saint-Laurent, the group finished the year generating revenue of €15.9bn and an operating margin of 30.1% (+90bp yoy). The group expects the uncertainties related to the Coronavirus could cause a considerable impact on the group’s results in Q1 20, but the group remains confident for FY20.
Kering group’s sales have slowed down but are softer than expected in Q3. Organic growth was 11.6% in Q3. Gucci’s sales were up 10.7% lfl, with a 2% decline in North America and a 17.9% jump in APAC.
Gucci disappoints with its more than expected slowing down in Q2. This could intensify market concerns on its trajectory in H2. BV was the good surprise with its move to positive growth in Q2.
Kering slowed down in Q1, as expected, but remains ahead of peers. Gucci was up 20% lfl but held back by 5% organic growth in North America. Growth in Asia was stunning at 35%. YSL was up 17.5% and BV was down 8.9%.
Gucci has stepped up its sales by 28% lfl in Q4 and by 37% lfl in FY2018. Group sales were up 29.4% organically to reach €13,665m. The recurring operating margin strengthened by 400bp to 28.9% and the recurring operating profit was up 46.6% to €3,944m. The outlook is solid with a good start of the year for Gucci. No normalisation was reported.
Kering has overruled all market fears and delivered another good quarter. Growth has slightly decelerated in Q3 compared to Q2 but this is due to the strong comparable basis yoy.
Gucci’s impressive growth only accelerated when Kering decided to focus on only luxury brands. The impressive operating margin improvement (+470bp yoy to 27.5% for the group) was largely driven by Gucci (38% margins!).
Research Tree provides access to ongoing research coverage, media content and regulatory news on Kering SA. We currently have 78 research reports from 4 professional analysts.
• Financial performance: Group revenue of £1,982.8m is +13.6% YOY and +41.3% versus FY20, representing significant market share gains versus global apparel markets that remain below pre-pandemic levels (UK: +27.3% versus market -3%, US +3.8% versus market -9%). The UK delivered a standout performance +27.3% YOY with strong growth across both established and new brands. Demand in international markets has been impacted by extended delivery times due to constrained airfreight capacity, a headwind
Companies: boohoo group Plc
H1 results confirm a strong recovery in store sales and a bounce back in profitability, benefitting from 26 weeks of uninterrupted trading. The Group is now debt free and has reinstated its dividend, with an interim distribution of 2.5p declared and scope for further special dividends and share buybacks.
Companies: Shoe Zone PLC
Companies: Made.com Group PLC
Zytronic’s interims confirm a continuing improvement in demand, driven by the Gaming and Vending sectors. This has driven a 24% increase in H1 revenue and a profitable outturn (PBT of £0.4m), on track for our full year forecast (SCMe: £1.0m) despite ongoing and well publicised supply chain challenges. Longer term recovery potential remains substantial and the Group is in excellent financial shape (net cash £7.5m post recent share buy-back programme).
Companies: Zytronic plc
Good H1 figures and the turnaround plan on track make the risk/reward tilt upwards given the recent underperformance against BAT. However, we continue to believe that IMB’s combustible focus strategy is not the right one and we see much more positive catalysts when looking at BAT.
Companies: Imperial Brands PLC
Feature article: Latest ONS survey: steady as she goes…and ignore retail investors at your peril The ONS (Office for National Statistics) has been charting the beneficial ownership of UK-quoted companies periodically since the early 1960s. The latest paper was published in March 2022, and considers the data for December 2020. At December 2020, “Rest of the World” investors owned 56.3% of the market, a further growth since the last survey, while UK institutions’ ownership edged up to 31.6%.
Companies: VTA TRX SCE STX AVO ARBB PANR RECI PCA OCI IBT ICGT FAS FCSS FEV FJV FSV DNL CLIG BBGI
Companies: Accrol Group Holdings plc
e client of Hybridan LLP Dish of the day Joiners: BSF Enterprise. Following the successful reverse takeover of 3D Bio-Tissues Limited, a tissue engineering business based in Newcastle, UK, the Company announces admission of the enlarged group to the standard segment of the Official List and initiation of trading on the Main Market under the ticker ' BSFA '. The Admission follows a placing which raised £1.75m at a placing price of 7.37 pence per share. Leavers: No Leavers Today. What’s cooking in
Companies: VANL TYM ACSO CCS FNTL SOLI TRAC ECK KIBO OSI
Today’s AGM update highlights a satisfactory start to the year. Against a worsening consumer backdrop and further supply chain disruption sales are up 2% and gross margin has nudged up. This reflects favourably on management and the strategy reset. With 80% of profits generated in H2 we leave our forecasts unchanged for now but clearly much will depend on the state of consumer demand in the months ahead. We expect to get better clarity with the H1 update in July but equally, geographic diversity
Companies: Portmeirion Group PLC
Accrol has delivered a robust trading update despite clear inflationary pressures on the business during the period. As a result, we are increasing our FY23 and FY24 revenue forecasts to reflect higher levels of activity and product inflation. Our headline earnings numbers remain unchanged following this update, albeit with growing confidence in FY23. We believe the shares look undervalued in what remains a strategically important player in the industry.
Residential-for-rent developer and manager Watkin Jones has confirmed it is on track to meet FY2022E expectations of rising profits in today’s interim results, which showed an 8% rise in revenue and a temporary decline in adjusted PBT, reflecting previously signalled timing and mix of sales. We are maintaining our estimates for FY2022E-23E, which show 21% compound growth in PBT. Longer term, we expect further growth fuelled by increasing demand for rental property from tenants and internat
Companies: Watkin Jones Plc
FY21A Results were well flagged in November’s trading update. Today’s announcement reveals the Group is now debt free and reiterates its intention to return to the dividend list in the current period. Shoe Zone has a clear and well-defined plan to transform its store portfolio and grow its digital offer through its shoehub platform, which we believe will deliver a well-balanced retail model that can win market share and drive profitable growth.
Companies: Frontier Developments Plc
Joiners: RC365 Holding has joined the Main Market (Standard). Founded in Hong Kong in 2013, the Group is a fintech solutions service provider in China and Hong Kong, and is looking to expand its payment gateway services into Europe and the UK. In connection with Admission, the Company successfully raised approx. £2m for the Group at a price of 6.2p per ordinary share. At the Issue Price, the Company's market capitalisation will be approx. £6.7m. Leavers: No Leavers Today. What’s cooking in the I
Companies: WAND ABDP CRPR PEN QTX RWS
Companies: GHH IGP IOM KBT QXT SRT
Share: