All houses contributed to Kering’s strong H1 performance

France
Published:  28 July, 2021
Credit: Gucci

The France-headquartered luxury conglomerate has reported consolidated revenue of €8,047.2 million, up 49.6% as reported and 54.1% on a comparable basis; recurring operating income of €2,237.0 million, up 134.9%; recurring operating margin of 27.8%; net income of €1,479.0 million, attributable to the group; as well as recurring a net income attributable to the group of €1,477.4 million.

Total revenue of Kering’s houses in the first half of 2021 amounted to €7,708.0 million, up 48.9% as reported and 53.3% on a comparable basis. Growth versus the first half of 2019 saw comparable revenue up 7.7% and a marked acceleration in the second quarter, up 10.5%. 

The houses’ recurring operating income totalled €2,296.3 million in the first half of 2021. Recurring operating margin was 29.8%, as its brands pursue major investment programs to further reinforce their growth potential.

High-end fashion brand Gucci posted first-half 2021 revenue of €4,479.3 million (up 45.8% as reported and 50.3% on a comparable basis), returning to its pre-pandemic level. Sales generated in directly operated stores – accounting for 91% of the house’s total revenue – were up 59% and 6.3% from the first six months of 2020 and 2019, respectively. The house continued to strengthen its positions with local customers.

The French fashion name Yves Saint Laurent's sales amounted to €1,045.5 million in the first half of 2021, up 53.5% as reported and 58.2% on a comparable basis. Revenue from directly operated stores rose 74.9% year-on-year and was up 17.3% against 2019. Sales bounced back in all geographic regions, and particularly North America and Asia-Pacific, reflecting the ongoing success of both the House’s iconic lines and its new collections.

Italian luxury fashion house Bottega Veneta generated revenue of €707.6 million in the first half of 2021, up 40.6% year on year as reported and 45.0% on a comparable basis. Sales in directly operated stores rose 45.2% compared with the first half of 2020 and 19.2% versus the same period of 2019, driven by very robust growth in North America in particular.

Revenue from the group’s other houses rebounded sharply in the first half of 2021, at €1,475.6 million, up 60.5% as reported and 64.5% on a comparable basis. Comparable revenue in the first half of 2021 was 22.7% higher than in the first six months of 2019. Sales growth was very robust for all of the other houses’ distribution channels, reaching 63.1% for directly operated stores and 66.8% for the wholesale network.

Outlook
Though it remains highly dependent on developments in the health situation and associated restrictions across countries and regions, the luxury market has posted a significant rebound since the beginning of the year. Kering considers itself “perfectly positioned” to fully benefit from the upturn, having successfully safeguarded its profitability while maintaining the expenditure and investments required to strengthen its houses and ensure their potential to bounce back.