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Kering, a France-based multinational corporation specialising in luxury goods, has announced that its Group revenue in the first half of 2022 grew 23 per cent as reported and 16 per cent on a comparable basis compared to the first six months of 2021. Group revenue also rose sharply compared to the first half of 2019, up 28 per cent on a comparable basis.
In the second quarter of 2022, sales rose by 20 per cent as reported and 12 per cent on a comparable basis, the difference being mainly due to currency effects. Sales from the directly operated retail network, including e-commerce, were up 12 per cent year-on-year on a comparable basis in the second quarter and up 32 per cent compared to the second quarter of 2019, driven by the success of Kering’s Houses with local customers and the resumption of tourism in Western Europe, the Group said in a press release.
Kering, a France-based multinational corporation specialising in luxury goods, has announced that its Group revenue in the first half of 2022 grew 23 per cent as reported and 16 per cent on a comparable basis compared to the first six months of 2021. Group revenue also rose sharply compared to the first half of 2019, up 28 per cent on a comparable basis.
The company’s recurring operating income grew 26 per cent in the first half, with all Houses contributing to growth. Recurring operating margin was 28.4 per cent, up 60 basis points compared to the first half of 2021. Its net income attributable to the Group hit a new record of €1,988 million, an increase of 34 per cent and the Group generated substantial free cash flow from operations of more than €2 billion.
In H1 2022, Gucci’s revenue amounted to €5,173 million, an increase of 15 per cent as reported and 8 per cent on a comparable basis. Sales from the directly operated retail network rose 8 per cent on a comparable basis, while wholesale was up 9 per cent. In the first half of 2022, Gucci’s recurring operating income totalled €1,886 million. Recurring operating margin was solid at 36.5 per cent, as the House continues to invest to advance its brand elevation strategy.
In the second quarter of 2022, Gucci’s revenue was up 12 per cent as reported and up 4 per cent on a comparable basis. Growth in sales in the directly operated retail network were robust in Western Europe, Japan, and North America, more than offsetting the impact of lockdowns in China. Momentum was also very strong in Southeast Asia, the release added.
Yves Saint Laurent’s revenue in H1 2022 totalled €1,481 million, up 42 per cent as reported and up 34 per cent on a comparable basis, reflecting the perfect execution of its strategy. Sales from the House’s directly operated retail network rose by 41 per cent on a comparable basis. Revenue from wholesale, currently being streamlined, grew by 10 per cent on a comparable basis due to a very high level of orders. Its recurring operating income was €438 million in the first half of 2022. Recurring operating margin was 29.6 per cent, a first-half record level, up 3.3 points compared to the year-earlier period.
Yves Saint Laurent’s sales in the second quarter of 2022 rose by 40 per cent as reported and by 31 per cent on a comparable basis, driven by Western Europe, Japan and North America, while revenue in Asia-Pacific was stable compared to 2021. Growth was particularly strong in the directly operated retail network (revenue up 35 per cent on a comparable basis), due to the success of all product categories.
In the first half of 2022, Bottega Veneta’s revenue amounted to €834 million, an increase of 18 per cent as reported and 13 per cent on a comparable basis. Sales from the directly operated retail network were up 19 per cent year-on-year. Wholesale revenue was down 4 per cent, in line with Bottega Veneta’s strategy to streamline its wholesale distribution. Bottega Veneta’s recurring operating income for the first half of 2022 totalled €168 million, and its recurring operating margin rose markedly to return to the 20 per cent level.
In the second quarter of 2022, Bottega Veneta’s revenue was €438 million, up 15 per cent as reported and up 10 per cent on a comparable basis. Sales momentum in the directly operated retail network remained very strong (revenue up 19 per cent on a comparable basis), even though the number of stores was unchanged.
Kering’s Other Houses continued to achieve very strong growth, with revenue close to €2 billion in the first half of 2022, up 32 per cent as reported and up 29 per cent on a comparable basis. Sales from the Other Houses’ directly operated retail network rose by 38 per cent, while wholesale was up 16 per cent on a comparable basis relative to the first half of 2021.
In the second quarter of 2022, sales of the Other Houses rose 28 per cent as reported and 24 per cent on a comparable basis. The revenue increase from the directly operated retail network remained strong (+33 per cent on a comparable basis), with progress across regions. Both Balenciaga and Alexander McQueen maintained their very strong growth trajectories, and Brioni confirmed its rebound. While Qeelin was affected by the situation in China in the second quarter, Boucheron and Pomellato delivered very solid performances.
The Other Houses contributed significantly to the increase in the Group’s recurring operating income. They generated record recurring operating income of €337 million in the first half of 2022, an increase of 71 per cent. Recurring operating margin was strong at 17.3 per cent, an increase of 4.0 points.
“The Group delivered sharply higher sales in the first half of 2022, sustaining last year’s topline momentum—solid performances in retail around the world more than offset the impact of COVID-related measures in China in the second quarter. We intensify our engagement with local customers across all markets, and we are also leveraging the nascent rebound in tourism in Europe. Each of our Houses contributed to the strong double-digit increase in Group operating income, leading to expanded margin for Kering as a whole. In a period of heightened macro uncertainty, Kering is in great shape to surmount short-term challenges, take advantage of new opportunities, and support the ambitious strategies and tremendous prospects of all our brands,” said François-Henri Pinault, chairman and CEO.
Fibre2Fashion News Desk (KD)
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