Kering Lifted Gucci Revenue Estimate, China Demand Drives Remy Cointreau Net

Sarla Buch
07 Jun, 2018
New York City

Kering estimated annual revenues in Gucci brand of about

[R]4:00 PM Frankfurt – Kering estimated annual revenues in Gucci brand of about €10 billion. Remy Cointreau reported higher-than-expected annual profits on strong demand in China.[/R]

In London trading, FTSE 100 index edged up 0.25 to 7,712.62 and in Frankfurt the DAX index slipped 23.59 or 0.2% to 12,805.47.

In Paris, CAC 40 index edged down 6 to 5,451.56.

H. Lundbeck A/S fell 0.2% to 447.10 Danish kronor after Denmark-based psychiatric and neurological drug maker said its U.S.-based subsidiary Lundbeck LLC agreed with the U.S. Department of Justice to pay 336 million kronor or $52.6 million to resolve a probe to its financial support of patient assistance charitable foundations.

Lundbeck reaffirmed fiscal 2018 revenue growth forecast between 17.2 billion kronor and 18 billion kronor and operating profit between 4.8 billion kronor and 5.2 billion kronor and capital expenditures of about 336 million kronor.

Mitie Group Plc gained 1.5% to 198.60 pence after the U.K.-based outsourcing and energy services provider reported revenues in the year ending in March jumped 2.8% from a year ago to £2.2 billion.

Net loss in the year narrowed to £26 million from £183.2 million in a year ago period and diluted loss per share decreased to 7.6 pence from 52.4 pence.

In fiscal 2017, Mitie restructured its project Helix program to reduce the costs and improve productivity.

The outsourcing services provider said new orders advanced 2.4% to £4.5 billion and reintroduced final dividend of 2.67 pence per share but for the year dividend will remain flat at 4 pence.

“We are one year into our transformation program and we are where we need to be,” said chief executive officer Phil Bentley.

Kering SA declined 3.4% to €482.20 after France-based luxury goods maker today estimated fiscal 2018 revenues in its mainstay Gucci brand to about €10 billion, higher than the reported revenues of €6.2 billion, and operating margin of more than 40% compared to 34% in fiscal 2017.

Today on Gucci investor day, Kering said its targeting capital expenditures to upgrade the store network and transformation information technology would cost less than 5% of revenue and estimated revenue from e-commerce to triple

Remy Cointreau plummeted 4.9% to €131.40 after France-based wine and spirits maker reported revenues in the year ending in March advanced 2.9% from a year ago to €1.1 billion.

Net profit in the period tumbled 22.1% to €148.2 million from €190.3 million in a year ago period and diluted earnings per share slumped to €2.98 from €3.87.

The wine and spirits maker said revenues in the liqueurs and spirits business declined 26%, mainly driven by deconsolidation of Passoa sales.

However, the maker of Remy Martin cognac and Cointreau liqueur said operating profit in the year jumped 14.1% and the operating margin surged 22%.