Kering Warns of Drop in Full-Year Profits

Suede Sapphire Collection: celebrating PUMA Suede's 45th anniversary.

Suede Sapphire Collection: celebrating PUMA Suede’s 45th anniversary.

Paris—Kering, owner of Gucci, Yves Saint Laurent and Puma, warned Thursday its full-year profit will be down “significantly” on the prior year, hurt by one-off charges at Puma and the disposal of its mail order business, La Redoute.

The  luxurygoods group, formerly PPR, said while it has examined offers for La Redoute, and will continue to evaluate other options, financing related to the disposal will have a significant impact on the net result from discontinued operations–expected to be strongly negative.

One-Off Charges

“Kering plans to select the best option that will continue transforming La Redoute and ensure its future and development, in the interests of the company, its employees and the region where it is based,” the company stated.

One-off charges at Puma will also affect Kering’s net income for the full year, but the company said these are non-recurring, and reiterated its confidence in the solidity of its 2013 operating performance.

Last month, Kering said it expects the restructuring and sale of its La Redoute mail order business will also have a “significant” impact on jobs, with new reports suggesting up to 700 jobs could be cut.

The company has been slowly divesting brands from its Redcats mail order division after it failed to find a buyer for the whole business.

 

 

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