French luxury group Kering has reported a revenue of €9.93 billion ($11.8 billion) for the first half of 2022, representing a +16% increase compared to the previous year. This growth is largely attributed to the success of its brand Saint Laurent. Kering’s targeted and selective expansion of distribution channels, including e-commerce, has contributed to a +32% increase in its owned retail network in the second quarter of 2022. The company’s efforts to engage with local customers and tap into the emerging rebound in European tourism have been key drivers of this growth.
CEO François-Henri Pinault highlighted that all of Kering’s brands have contributed to its strong operating income growth, resulting in an improvement in the group’s margin. Gucci, a highly sought-after brand, recorded a revenue of €5.17 billion ($6.12 billion), an +8% increase on a comparable basis. Although Gucci’s growth slowed in the second quarter due to Covid-19-related measures in China, strong sales in Western Europe, Japan, and the United States balanced out the performance.
Meanwhile, Saint Laurent continued to experience significant growth with a +34% increase in revenue to €1.48 billion ($1.75 billion) for the first half of the year. The brand’s impressive performance in the first quarter (+37%) continued throughout the semester. Bottega Veneta, with a new artistic director on board, achieved a revenue of €834 million ($986 million), marking a +13% increase. Other brands within the Kering group, including Balenciaga, Alexander McQueen, and Brioni, collectively generated €2 billion ($2.36 billion) in sales, up +29% on a comparable basis.
Looking ahead, Kering remains committed to its strategic plan and aims to optimize its resources to support operational performance, maintain a high cash flow generation, and optimize the return on invested capital. Recognizing the increasing uncertainty in the macroeconomic environment, the company emphasizes consistency and determination in navigating these challenges.
In conclusion, Kering’s strong results for the first half of 2022 reflect the resilience and success of its luxury brands, driven by the impressive performance of Saint Laurent and the continued popularity of Gucci. With a solid strategic plan in place, the company is well-positioned to navigate the challenges of the luxury market and maximize profitability and shareholder value in the coming months.
Useful links:
1. Kering Official Website
2. Business of Fashion
