On the day of the half-yearly report, which shows revenues of over 10 billion euros, Kering announces the agreement to acquire 30% of Valentino, with the option to acquire the entire share capital by 2028. The French luxury group
First half held back by Gucci
In the first half of 2023, Kering recorded recurring operating income of €2.739 billion (-3% at comparable rates) with a 27% margin on sales and a net profit of €1.785 billion, down by 10%, held back by the performance of the Gucci brand, which saw sales drop by 1%. The half-yearly turnover of the French luxury group as a whole rose by 2% to 10.1 billion euros. Operating free cash flow, excluding real estate acquisitions and disposals, was 2.1 billion euros, up 4% from a year ago.
The Gucci brand, which accounts for about half of the group’s turnover and remains for the moment under the interim leadership of Jean-François Palus, recorded revenues of 5.1 billion in the first half (-1%), while in the second quarter for the year, revenues increased by 1%, and a recurring operating profit of 1.81 billion (-4%). Yves Saint Laurent’s revenues grew by 6% to 1.6 billion euros with an operating profit of 481 million (+10%), while those of Bottega Veneta remained stable at 833 million euros and operating profit was amounted to 169 million.
The other brands recorded revenues of 1.856 billion (-5%) and an operating profit of 224 million (-34%). In detail, Balenciaga is recovering, thanks above all to the Asia-Pacific region; Alexander McQueen’s clothing has achieved good results, while Brioni continues to make progress, thanks to a good mix of formal, leisure and bespoke offerings.
The jewelery houses of the Group – Boucheron, Pomellato and Qeelin – have maintained their decisive trajectory, recording double-digit growth.