The numerous global uncertainties can currently do little to harm the luxury goods industry: one day after its major competitor LVMH, the French fashion group Kering SA also presented strong half-year figures on Wednesday evening. Sales grew strongly and profits reached a new record high.
In the first six months of the 2022 financial year, Group sales amounted to EUR 9.93 billion, exceeding the corresponding prior-year level by 23 percent. On a comparable basis – i.e. adjusted for acquisitions and sales as well as currency effects – revenues increased by 16 percent. Also compared to the first half of 2019, which was not yet affected by the effects of the Covid-19 pandemic, Kering was able to increase significantly with an increase of 28 percent on a comparable basis.
Yves Saint Laurent is growing significantly faster than Gucci
However, the growth in the main brand Gucci was below average: its sales grew by only 15 percent (currency-adjusted +8 percent) to 5.17 billion euros. The other divisions developed more dynamically. The fashion house Yves Saint Laurent increased its sales by 42 percent (currency-adjusted +34 percent) to 1.48 billion euros, the label Bottega Veneta increased by 18 percent (currency-adjusted +13 percent) to 834 million euros.
The smaller group brands, which include Balenciaga and Alexander McQueen, together generated sales of EUR 1.95 billion, an improvement of 32 percent (currency-adjusted +29 percent) compared to the previous year’s level. In the Kering Eyewear and Corporate segment, sales grew by 49 percent to EUR 591 million, not least thanks to the takeover of the glasses manufacturer Lindberg. On a comparable basis, the rate of increase was 26 percent.
Thanks to a higher operating margin, the operating result adjusted for special effects grew by 26 percent to 2.82 billion euros. The net profit attributable to the shareholders even increased by 34 percent and, at 1.99 billion euros, reached a new record in the history of the group.
Despite global uncertainties: CEO Pinault sees Kering in “excellent shape”
Chairman and CEO François-Henri Pinault was pleased that the group was able to “maintain the momentum of the previous year” in the first half of the year. “Solid retail results around the world more than offset the impact of the COVID-19 lockdown in China in the second quarter,” he said in a statement. Kering will now “intensify efforts to attract local customers in all markets and also use the beginning upswing in tourism in Europe”.
Despite “heightened macroeconomic uncertainty,” Pinault said the group was “in excellent shape to meet near-term challenges, seize new opportunities and support the ambitious strategies and great prospects of all our brands,” he said.