First-world problems

13 February 2018 By Carol Ryan

Kering is joining LVMH in hiking dividends. A 30 percent jump in its cash payout comes on top of the Puma stake that Gucci’s parent is handing over to shareholders. With valuations high and cash piling up, lavish generosity is needed to keep hard-to-please investors happy.

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Gucci’s parent Kering said on Feb. 13 its 2017 revenue rose to 15.5 billion euros, up 25 percent from a year earlier. The group’s recurring operating income rose 56.3 percent over the same period, to 2.9 billion euros.

Revenue from the group’s luxury brands, including Yves Saint Laurent and Bottega Veneta, rose to 10.8 billion euros in 2017, up 29.9 percent from 2016.

Kering said its board was asking shareholders to approve a cash dividend of 6 euros a share for 2017, a 30 percent increase from a year ago. An interim cash dividend of 2 euros a share was paid on Jan. 17.

The company said that its distribution of Puma shares to investors, first announced on Jan. 11, will take place on May 16. Kering will offer 1 Puma share for every 12 Kering shares held.

Kering’s shares were down 2.5 percent at 370 euros by 0830 GMT on Feb. 13.

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