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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.
Companies: Kering (KER:EPA)Kering SA (KER:PAR)
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!).
Gucci’s sustainable appetite maintains the booming sales for Kering. Other brands are accelerating and all distribution chains are performing well. The outlook is strong.
A spectacular performance from Gucci, alongside a strong performance from the other brands in all geographies, have led to a record year for Kering. The medium-term target is to consolidate the organic growth away from acquisitions for the time being.
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H1'22 Interim Results: Caution Ahead!
Companies: Frontier Developments 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: Shoe Zone PLC
Unilever’s bid for GSK’s Consumer HealthCare division is causing a stir, as it seems totally unreasonable. The group was asked to move on portfolio rotation, but definitely not to be so ambitious at the risk of penalising shareholders.
Companies: Unilever PLC
Genflow Biosciences, a UK-based biotechnology company focused on longevity and the development of therapies to counteract the effects of aging and diseases associated with advanced age intends to float on the Main Market (Standard). The Company will become the first longevity biotechnology firm to list in Europe. Genflow has raised £3.7m in an oversubscribed placing, conditional upon admission becoming effective. The flotation will value Genflow at approximately £23.4m.
SuperSeed Capital Limited
Companies: RQIH ABDP ACRL HAYD IQG
Accrol has released a trading update highlighting further inflationary cost pressures guiding FY22E adjusted EBITDA to be significantly below FY21A.
Companies: Accrol Group Holdings plc
Companies: MJ Gleeson PLC
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Ridgecrest (Formerly Nakama Group) has left AIM.
What’s cooking in the IPO kitchen?
Carbon Air, a nano-technology company which leverages the adsorption properties of activated carbon and other advanced materials to improve suspension systems, enhance acoustics or reduce noise, to join AIM. The Company's proprietary technology has allowed it to develop a unique portfolio of solutions for a variety of sizeable end markets, including vehicle suspension systems,
Companies: SYS1 AML AML CWR ESNT GML JDG RENX RRR AIR
Companies: Frasers Group PLC
Trackwise Designs has developed a proprietary, proven technology, IHT, for manufacturing extremely long, flexible circuits that can replace conventional wiring harnesses. This disruptive technology is applicable to many industries including electric vehicles (EVs), medical devices and aerospace. Since listing in July 2018, Trackwise has invested substantially in capacity, acquiring Stevenage Circuits in March 2020 and a new site in Stonehouse in April 2021. The new site is scheduled to commence
Companies: Trackwise Designs Plc
Where next for markets in 2022? In our view, if COVID is not on the way out, we are just going to have to live with it now and it will have less and less impact on economic forecasts going forward. Instead, the bigger issues for investors to deal with in 2022 are cost inflation and staff shortages for business (which are already hitting earnings momentum), energy cost inflation and higher taxes hitting the consumer wallet, and markets that start from very elevated valuation multiples compared wi
Companies: GML HAT IOG LOK MTC QTX SOM SCE SNG TRCS TRMR
Games Workshop Group’s (GAW’s) H122 results reflect lower year-on-year revenue growth after a very strong FY21, as expected, with positive comments on new launches, specifically the third edition of Age of Sigmar. Ongoing internal investment to support future growth and new external cost pressures led to a reduction in operating profit pre-royalties, which was more than offset by the notable increase in royalty income. As previously flagged, the shape of our FY22 forecasts has changed to reflect
Companies: Games Workshop Group PLC
Sanderson Design Group is a leading luxury interior furnishings company, specialising in fabrics, wallpaper and paints, which are sold around the globe. Since the change in leadership in 2019, the group has been following a clearly articulated strategic framework with detailed milestones up to FY24, including its sustainability programme, Live Beautiful. This is with a view to driving sales (and profitability) to close the gap between the undoubted brand equity within its portfolio and the relat
Companies: Sanderson Design Group PLC
We continue to believe that IMB is not necessarily a short-term strategic investment given the fact that the company is entering the second year of its “strengthening phase” with further investments which should weigh on margins, so no major improvement in the shareholder return.
Companies: Imperial Brands PLC