Strong profitability for Kering in first half

Worldwide
Published:  29 July, 2019
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Consolidated revenue for the French luxury conglomerate stood at €7,638.4 million for the first half of 2019, up 18.8% as reported and 15.3% on a comparable basis.

Kering’s recurring operating income increased 25.3% in the first six months of the year to €2,252.7 million. Recurring operating margin was up 160 basis points to 29.5% and net income, Group share amounted to €579.7 million. Recurring net income, Group share in the period increased 24.7% to €1,556.1 million.

Total revenue generated by the Group’s Houses increased 15.2% on a comparable basis to €7,364.4 million, with Gucci posting “another period of outstanding growth” with revenue up 16.3% on a comparable basis despite particularly high bases of comparison, according to Kering. There was an “ongoing strong growth momentum” for Yves Saint Laurent, with sales up 16.6% on a comparable basis, but a “contrasted period” at Bottega Veneta, whose revenue was down 3.8% on a comparable basis despite a positive second quarter. “Excellent performances” were recorded for Other Houses (up 20.3% on a comparable basis), powered by Balenciaga, Alexander McQueen and the Jewellery Houses.

“We created an additional €1.2 billion in revenue in the six months, and our operating margin reached a record 29.5%. Our strategy is clearly paying off. The success of our brands, built on creativity, innovation, and customer dedication, along with rigorous execution and financial discipline, are delivering a superior combination of organic growth and sustainable profitability”, said François-Henri Pinault, Chairman and CEO, Kering.

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