Record-breaking profits for Kering

Kering registered a record-breaking net profits, finishing the first half-year with a sprint of 34% to 1.98 billion euros. A result beyond expectation for the French luxury giant, which has reported a significant acceleration in its turnover, increased by 23% to 9.93 billion euros. The group’s revenues greatly increased if compared to the first half of 2019, up by 28% on a comparable basis. In the half-year, the ebit amounted to 2.82 billion euros (+26%) with a margin of 28.4%, increasing by 60 bps.

In particular, in the second quarter of 2022, sales increased by 20% thanks to directly operated retail, including e-commerce, which registered a 12% yearly improvement and a 32% increase if compared to 2019. A magnificent result that was achieved thanks to the brands’ popularity among local clients and a tourism recovery in Europe.

«The group registered a sharp increase in sales for the first half of 2022, maintaining last year topline’s momentum. Solid performance worldwide more than offset the impact of zero-Covid-19 measures in China in the second quarter», chairman and ceo François-Henri Pinault commented. «In a period of great macroeconomic uncertainty, Kering is in excellent shape to overcome short-term challenges, take advantage of new opportunities and support the ambitious strategies and extraordinary prospects of all our brands».

Among the designer labels, Gucci remained the top brand with 5.17 billion euros (+15%). Directly operated retail sales rose by 8%, remaining robust in Western Europe, Japan and North America, which more than offset closures in China. Market dynamics were also strong in Southeast Asia. Whereas wholesale grew by 9%. In the first half of the year, the brand's ebit was 1.88 billion euros, with a solid operating margin of 36.5%.

Yves Saint Laurent's half-year revenues amounted to 1.48 billion euros (+42%), reflecting the perfect execution of its strategy. The fashion house's operating profit was 438 million euros, with a recurring operating margin of 29.6%, a record level for the first half of the year, up by 3.3 points from the previous period. As for Bottega Veneta, revenues for the six months amounted to 834 million euros (+18%) and its ebit was 168 million euros with an operating margin increased significantly, returning to the 20% level. (all rights reserved)