Kering Reports Strong Revenue Growth in First Half of 2019
Luxury group Kering announced significant increases in both revenue and profitability for the first half of 2019. The company's revenue rose by 18.8% on a reported basis.
Kering, the global luxury group, has reported a strong performance for the first half of 2019, with substantial growth in revenue and profitability.
Consolidated revenue reached €7.638 billion, an increase of 18.8% as reported and 15.3% on a comparable basis. This revenue growth exceeded market expectations.
Recurring operating income saw a significant rise of 25.3% to €2.25 billion, with the operating margin improving by 160 basis points to 29.5%. Recurring net income, attributable to the Group, increased by 24.7% to €1.55 billion.
The performance was driven by notable growth from brands like Gucci and Yves Saint Laurent, while Bottega Veneta experienced a decline but showed positive signs in the second quarter. Other Houses, including Balenciaga and Alexander McQueen, also delivered strong results.
François-Henri Pinault, Chairman and CEO, described the results as "very strong," attributing the success to the company's strategy, the creativity and innovation of its brands, and disciplined execution, leading to a combination of organic growth and sustainable profitability.