about 4 years ago • 2 mins
Luxury group Kering reported better-than-expected sales growth in the final quarter of 2019 – and it was all thanks to one of its flagship brands, Gucci 👛
Given that Gucci makes up over 80% of Kering’s profits, investors tend to use the Italian brand’s performance as a barometer of how Kering itself is doing. And while ongoing protests saw Gucci’s sales in Hong Kong halve during the last three months of 2019, strong growth elsewhere pushed its overall fourth-quarter sales up 11% from a year ago 📈
Investors’ focus is now shifting from Hong Kong to the mainland, where the coronavirus has forced Kering to close half of its stores. The company said it’s too soon to know the full extent of the damage, but it’s wasting no time redirecting goods away from China and slashing its marketing budget in the country.
Kering’s shares rose over 5% on Wednesday, just as European stocks hit another record high. And that’s a party Heineken wasn’t about to miss: the world’s second-largest brewer rose 5% as sales of the company’s eponymous beer grew by the most in a decade. That boom might not be unfamiliar, but the reason for it was: Heineken’s alcohol-free beer saw double-digit sales growth 🍻
Europe’s stocks might be having a field day, but the same can’t be said for the continent’s manufacturers. Data out on Wednesday showed European industrial production in December fell by the most in almost four years. And that’s before the coronavirus struck: European carmakers have already warned there’ll be further disruptions due to factory shutdowns in China 🤧 Not the best news for German carmaker Daimler, which was hoping for a better 2020 after reporting its worst annual performance in a decade on Tuesday.
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