Gucci and Saint Laurent shine as Kering posts 26.8% jump in revenues

Gucci AW18 Kering
Gucci AW18

Luxury conglomerate Kering had a “dazzling” first half of the year according to chairman and CEO François-Henri Pinault as it achieved a 26.8% reported growth in revenue reaching €6.43bn.

The group also achieved a record-high recurring operating income of €1.77bn, up 53.1%, while its recurring operating margin was up 470 basis points to 27.5%.

“Kering achieved dazzling top-line and earnings performances in the quarter and six months. Our growth, grounded in the exclusivity and desirability of our brands, is remarkably healthy. The development model we implement across our Houses paves the way for increased value creation as well as profitable, sustained and consistent organic growth,” said Pinault.

Gucci’s revenue in the period was up 44.1% while Saint Laurent achieved sales up 19.7% on a comparable basis. The picture at Bottega Veneta, which recently appointed British designer Daniel Lee as creative director to replace Tomas Maier, was mixed with comparable sales edging down 0.9%.

At its other houses the business saw a “sharp year-on-year revenue increase” (up 36.5% on a comparable basis), led by Balenciaga’s sales rise and a faster pace of growth for Alexander McQueen.

Kering has been focusing its energy on its big name luxury brands having divested sports brand Puma and selling back its 50% stake in Stella McCartney to the designer herself. It is also looking to sell its stake in Christopher Kane and revealed it was in consultation with the British designer “about the conditions in which [he] could take back full control of the eponymous brand”.