Kering 1st Half Profit, Sales Rose as Gucci Recovers Strongly
July 27 2021 - 12:02PM
Dow Jones News
By Joshua Kirby
Kering's earnings and revenue climbed strongly in the first
half, as main brand Gucci recovered to pre-pandemic sales
levels.
Net profit in the six months to end-June rose to 1.48 billion
euros ($1.75 billion) from EUR272.6 million in the first half of
2020, as sales increased to EUR8.05 billion from EUR5.38 billion,
the French luxury-goods conglomerate said Tuesday. This beat
analyst expectations of EUR7.86 billion in sales, according to a
FactSet-compiled consensus.
The group made recurring operating income of EUR2.24 billion,
more than doubling from EUR952.4 million in the previous-year
period.
Revenue at powerhouse brand Gucci increased by 46% to EUR4.48
billion. Gucci, which lagged some big fashion rivals during the
pandemic--partly as a result of its high exposure to travel
retail--continues to strengthen its position with local customers,
Kering said.
Yves Saint Laurent and Bottega Veneta posted similar sales
increases, while revenue at other houses climbed 61% on year.
Group sales had a strong exit rate, almost doubling on year in
the second quarter, Kering said. Looking ahead, the company said it
was confident of benefiting from a strong rebound in demand for
luxury goods.
Kering remains active in the field of mergers and acquisitions,
Chief Financial Officer Jean-Marc Duplaix said in a conference
call, pointing to the recent acquisition of Danish eyewear maker
Lindberg.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
July 27, 2021 11:54 ET (15:54 GMT)
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