By Euan Conley
French luxury conglomerate Kering SA (KER.FR) said Tuesday that its net profit for 2017 more than doubled on "spectacular" growth from its two largest brands.
Net profit for the company was 1.79 billion euros ($2.20 billion), compared with EUR814 million a year earlier, which the company attributed to strong performance from its Gucci and Yves Saint Laurent brands. Recurring net income totaled EUR2 billion, it said.
Fourth-quarter sales for Kering were up 21% at EUR4.26 billion, the company said, with its flagship Gucci brand posting sales of EUR1.82 billion for the period. Gucci's annual sales were EUR6.21 billion, it said.
Yves Saint Laurent, Kering's second-largest brand, posted fourth-quarter sales of EUR407 million, compared with EUR346 million a year earlier.
The company proposed a cash dividend of EUR6 a share, a 30% year-on-year increase. Kering said it plans to distribute one Puma share to its shareholders for every 12 Kering shares held. The Puma share plan, part of Kering's strategy to reduce its holding in the German sportswear maker, will be proposed at the annual general meeting in April.
Kering added that it seeks to achieve same-store revenue growth in 2018 while ensuring a targeted and selective expansion of its store network.
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