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Kering defies fears over Chinese market

Revenues at grew 26.3% year on year to €13.7bn (£12bn) at luxury brand group Kering in its full-year results for 2018, thanks to a strong performance from Gucci.

EBITDA climbed 42% to €3.7bn (£3.2bn), and Kering’s operating income was up a record 46.6% to €3.9bn (£3.4bn), defying recent concerns over a slowdown in the Chinese market.

Gucci’s revenue “topped €8bn [£7bn]”, rising 33.4%, as all regions showed strong growth, led by Asia-Pacific, which was up 43.6%.

Online sales surged 70.1%. Kering, which also owns Saint Laurent, Balenciaga and Bottega Veneta, announced in November that it was moving its ecommerce operations in house. At the time it said it aimed to develop its own ecommerce sites by 2020.

Looking forward, the group said it planned to continue “to implement its strategy focused on achieving same-store revenue growth, while ensuring a targeted and selective expansion of the store network in order to strengthen its brands’ operating margins for the long term”.

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