By Cristina Roca
Kering (KER.FR) said Tuesday that its net profit more than doubled in 2018 compared with 2017 and raised its dividend for the year.
The French luxury-goods company said its net profit rose to 3.71 billion euros ($4.19 billion) from EUR1.79 billion in 2017, beating analysts' expectations of EUR2.79 billion net profit for the year, according to a consensus estimate provided by FactSet.
Kering's fourth-quarter revenue rose 25% from the same period a year earlier to EUR3.83 billion, falling in line with consensus expectations of EUR3.81 billion, according to FactSet.
The owner of Gucci said revenue for the year totaled EUR13.67 billion compared with EUR10.51 billion a year earlier.
Revenue at Gucci, Kering's flagship brand, grew 28% to EUR2.34 billion in the fourth quarter. Recurring operating margin at the brand expanded to 39.5% by the end of the year, Kering said.
Revenue at Yves Saint Laurent, another brand owned by Kering, rose 20% in the last quarter of the year, while revenue at the Bottega Veneta label, which is in the midst of a turnover, fell 2.4%.
The company proposed a cash dividend of EUR10.50 a share, up from EUR6 the year before.
Kering said that for 2019, it will aim to further improve its operating performance, maintain a high level of cash-flow generation, and keep growing its return on capital employed, and that it continues to focus on its same-store growth strategy.
Write to Cristina Roca at email@example.com