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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!).
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• 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
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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.
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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.
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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
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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
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According to Proactive Investors, Bridgepoint is said to preparing to list Burger King UK on the London Stock Exchange as early as this spring. A valuation of £600m is expected. Lift Global Ventures plc to join AQSE Growth Market. The Company's investment strategy is to operate as an enterprise company seeking acquisition or investment opportunities within the financial media and technology industries. Within these broad industries, areas of focus may include: Financial news websites and other f
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Melrose embraces sustainability through two avenues: internally through continuous development of its ESG practices and externally through the development of enhanced or completely new products that assist global decarbonisation. The former offers the potential to improve the internal operations of acquired businesses, an inherent part of Melrose’s ‘buy, improve, sell’ strategy, and the latter offers accelerated growth opportunities through the increasing push to reduce global emissions. Improve
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We initiate coverage alongside today’s in-line update for FY2021E. The Group expects to deliver sales 29% ahead at £11.1m and an EBITDA of £0.5m (FY2020 - £1.2m). This reflects the investment in the development and launch of EV battery cell monitoring systems (‘CMS’) to a leading German OEM, resourcing to support growth plans, and costs and inefficiencies associated with CV19 disruption. Looking forward, the EV business is noted to be performing ahead of expectations reflecting momentum in the s
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Burberry has published an encouraging FY21/22 result, reflecting a good progression in margin and brand quality. However, the group confirmed that the outlook is dependent on the impact of COVID-19 in China, and the group is actively managing the headwind from inflation within the current uncertain macro-economic environment. The new CEO reaffirmed the continuation of the strategic direction in the medium term, offering greater stability.
Companies: Burberry Group plc
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