Kering reports significant profit increase in the first half of 2022
The luxury group Kering has published its results for the first half of 2022 on 28 July. Its net profit of 1.988 billion euros corresponds to a growth of +34%.
By Eva Morletto28 juillet 2022
Gucci, the brand that symbolises François-Henri Pinault's empire, alone achieved sales of 5.173 billion euros, with the total sales of the group's companies amounting to 9.93 billion.
As for LVMH, Western Europe and the United States were the drivers of this growth. The Chinese market continues to suffer a slowdown due to the unstable health situation and the difficulties in containing the spread of the Covid-19 pandemic.
Overall, the Kering group's results were slightly better than the agencies' forecasts. Bloomberg expected a turnover of 9.762 billion euros, and Factset announced 9.824 billion euros. François-Henri Pinault expressed his satisfaction in a press release, underlining the excellent results, despite a complicated macroeconomic context and the uncertainty weighing on the markets. The CEO confirmed the group's determination to support the strategies and objectives set by its prestigious houses.
Amongst Kering's other flagships, Saint Laurent recorded a remarkable progression: the house reported a turnover of 1.48 billion euros, up by +42%. The performance was also very positive for Bottega Veneta, which posted sales of 834 million euros and an increase of 18% compared to the first half of 2021.
The growth concerns all of the group's sectors: the Kering Eyewear division reported total sales of 576 million euros and a 50% increase over the year. According to the group's financial director, Jean-Marc Duplaix, the excellent results can also be attributed to the recovery of tourism in Europe, after two years of forced stoppage.
Americans, currently benefiting from a strong dollar, have largely contributed to this upturn, since in the second quarter of 2022, their purchases in Europe have quadrupled compared to 2021 and are higher than in 2019, before the health crisis. In its press release, Kering announces that it wants to continue this momentum, particularly by investing in the development of "cross-functional growth platforms in e-commerce, omnichannel, logistics and technological infrastructures, expertise and innovative digital tools."
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