Kering's H1 revenue and profit accelerate

Kering Group revenue in the first half of 2022 grew 23 percent as reported to 9,930 million euros and 16 percent on a comparable basis compared to the first six months of 2021. Group revenue also rose compared to the first half of 2019, up 28 percent on a comparable basis.

In the second quarter of 2022, sales rose by 20 percent as reported and 12 percent on a comparable basis, the difference being mainly due to currency effects.

“The group delivered sharply higher sales in the first half of 2022, sustaining last year’s topline momentum—solid performances in retail around the world more than offset the impact of Covid-related measures in China in the second quarter. Each of our Houses contributed to the strong double-digit increase in group operating income, leading to expanded margin for Kering as a whole,” said François-Henri Pinault, Chairman & CEO of Kering.

Kering reports profit growth of 34 percent

The company said, sales from the directly operated retail network, including e-commerce, were up 12 percent on a comparable basis and up 32 percent compared to the second quarter of 2019, driven by the success of Kering’s Houses with local customers and the resumption of tourism in Western Europe.

Recurring operating income grew 26 percent in the first half, while recurring operating margin was 28.4 percent, up 60 basis points compared to the first half of 2021.

Net income attributable to the group reached 1,988 million euros, an increase of 34 percent.

Luxury labels under Kering posts robust performance

In the first half, Gucci’s revenue amounted to 5,173 million euros, an increase of 15 percent as reported and 8 percent on a comparable basis. Sales from the directly operated retail network rose 8 percent on a comparable basis, while wholesale was up 9 percent.

In the second quarter, revenue was up 12 percent as reported and up 4 percent on a comparable basis. Growth in sales in the directly operated retail network was robust in Western Europe, Japan, and North America, more than offsetting the impact of lockdowns in China. Momentum was also very strong in Southeast Asia.

Yves Saint Laurent’s revenue in the first half totaled 1,481 million euros, up 42 percent as reported and up 34 percent on a comparable basis. Sales from the House’s directly operated retail network rose by 41 percent on a comparable basis. Revenue from wholesale grew by 10 percent on a comparable basis.

Sales in the second quarter rose by 40 percent as reported and by 31 percent on a comparable basis, driven by Western Europe, Japan and North America, while revenue in Asia-Pacific was stable compared to 2021. Directly operated retail network revenue was up 35 percent on a comparable basis.

In the first half of 2022, Bottega Veneta’s revenue amounted to 834 million euros, an increase of 18 percent as reported and 13 percent on a comparable basis. Sales from the directly operated retail network were up 19 percent year-on-year. Wholesale revenue was down 4 percent.

In the second quarter, Bottega Veneta’s revenue was 438 million euros, up 15 percent as reported and up 10 percent on a comparable basis. Sales in the directly operated retail network rose 19 percent on a comparable basis, even though the number of stores was unchanged.

Revenues of Kering’s other Houses close to 2 billion euros in the first half was up 32 percent as reported and up 29 percent on a comparable basis. Sales from the other Houses’ directly operated retail network rose by 38 percent, while wholesale was up 16 percent on a comparable basis relative to the first half of 2021.

In the second quarter of 2022, sales of the other Houses rose 28 percent as reported and 24 percent on a comparable basis. The revenue increase from the directly operated retail network was 33 percent on a comparable basis, with progress across regions.

Revenue of the Kering Eyewear and Corporate segment in the first half amounted to 591 million euros. Kering Eyewear’s revenue totaled 576 million euros, up 50 percent as reported including the integration of Lindberg, and up 26 percent on a comparable basis. In the second quarter, growth in Kering Eyewear revenue was 17 percent on a comparable basis.