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Kering, revenues over 8 billion in the half year

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Positive development of sales also for Kering in the second quarter of the year. After the good data of LVMH and Richemond, the good news continues for the luxury sector. The French group recorded a total turnover of 8,047 billion euros (+ 54.1% at comparable rates and + 49.6% at current rates). In comparison with the pre-pandemic 2019 data, revenues improved by 8.4%. Sales through ecommerce increased sharply: they were 2.6 times higher than those of the first half of 2019, reaching almost 900 million euros. The operating profit of the group in the period reached € 2.237 million (+ 134.9%).

«Kering achieved an excellent performance in the first half of 2021, confirming the return to a growth trajectory. All our Houses contributed to the strong growth in turnover, which exceeded the corresponding levels of 2019, with a strong acceleration in the second quarter. While having recovered a high level of profitability, we continue to increase investments in our Maisons and our strategic initiatives, in particular in order to strengthen the exclusivity and control of our distribution network. In an environment that can change rapidly, we have the skills, resources and strategy to continue our journey successfully ”comments François-Henri Pinault, president and CEO of Kering.

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The second quarter

In the second quarter alone, the French group recorded comparable revenues up by 95% to 4.16 billion euros in the three months ending in June and the comparison with 2019 is also positive, which sees an increase of 11%. To push the result, Gucci’s sales exceeded pre-pandemic levels thanks to the appeal that the Italian brand continues to have on younger consumers through its social media campaigns. Revenues also benefited from the loosening of the block to retail sales. Sales of Gucci increased 86% on a comparable basis during the second quarter, compared to analysts’ expectation of a more contained increase of 77%. Gucci’s strong performance boosted the Kering Group’s total revenues, which saw an 11.2% increase over the same period of 2019, pre-pandemic.

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Kering, after LVMH and Richemont, therefore gives positive signals to the world of luxury with a recovery in sales higher than expected. Signals that are read by experts such as the propensity of international consumers to want to spend the savings accumulated during the months of closure of the stores. “The performance in the first half is excellent, both from the point of view of revenues, but also from the side of profitability,” commented CFO Jean-Marc Duplaix at a press conference, highlighting the particularly good results in Asia Pacific and North America.

The group, in light of the first half, is now “confident” that Gucci’s profitability will improve further. The rebound of Gucci, which is celebrating its 100th anniversary, should allay the fears of investors who feared a slower recovery of sales in this 2021.

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