The Group’s H1 Report Shows Small but Steady Growth Compared to an Already Strong Previous Year
Following up on a strong 2022, Kering’s half-year report showed small but steady earnings for the luxury group, with revenues up for all of the company’s major brands.
The total group revenue reached 10.14 billion euros, up 2% from the same period last year. Meanwhile, in terms of its stock, the group saw slight losses as earnings per share attributable to the group fell 9%, from 16.09 in the first half of 2022 to 14.60 in the first half of 2023.
In the second quarter of 2023, sales rose 2% as reported and 3% on a comparable basis.
Revenue from the directly operated retail network, which includes e-commerce sites, grew 4% on a comparable basis in the second quarter, with good performances in Asia-Pacific and Japan. Growth in Western Europe was solid, while sales fell in North America.
Revenues from Gucci, Saint Laurent, and Bottega Veneta each reported single digit growth percentages in the first semester, with revenues from all other brands dropping by 5% versus the same period last year.
The Asia-Pacific region accounted for the largest part of total revenue by region, with 37%. North America made up 22% of revenue, while western Europe accounted for 27%. Japan and the rest of the world each accounted for 7% of total revenue.
Kering invested in all regions with openings of directly owned stores, adding 35 retailers around the world in the first half of 2023 for a total of 1,694.
Free cash flow from operations, excluding real-estate acquisition and disposal, remained high at €2.1 billion during the first half, up 4%.
François-Henri Pinault, Kering’s Chairman and Chief Executive Officer, said in a statement released alongside the report, “In the first half, we pursued our investments in our Houses’ desirability and exclusivity. While engaging in critical forward-looking initiatives, we maintained a high level of profitability. We also took some decisive steps to expand our footprint in the luxury universe, notably with the acquisition of the famed Creed fragrance house to accelerate the liftoff of Kering Beauté. Together with the major organizational changes we announced last week to enhance stewardship of our Houses, as well as the many projects we have already launched over the past few months, the developments of the first half strengthen my confidence in Kering’s future prospects.”
