Kering profits from luxury boom; reports strong Q2 sales

Kering profits from luxury boom; reports strong Q2 sales

THE WHAT? French luxury group Kering has reported Q2 sales of €4.16bn, beating analyst expectations of €3.8bn, marking an 11 percent rise comparable to 2019.

THE DETAILS H12021 consolidated revenue was up 54.1 percent from 2021, and 8.4 percent from 2019 on a comparable basis. 

Sales generated in directly operated stores, accounting for around 80 percent of the company’s total sales in H12021, were driven by ‘excellent momentum’ in North America and the Asia Pacific region, with overall comparable sales, including e-commerce, being up 11.2 percent from 2019. 

E-commerce represented 14 percent of total sales in the first half of 2021. 

Gucci reported Q2 sales of €2.3bn, up 82 percent from 2020 when lockdowns were in place, and an increase of 1 percent from the comparable period of 2019. 

Yves Saint Laurent also witnessed a return to growth, with sales reaching €1,045.5 million in the first half of 2021.  

THE WHY? The strong sales uptick was driven by the continued lure of luxury during the pandemic, with analysts expecting the four biggest groups in the prestige market – Kering, LVMH, Hermes and Richemont, to beat 2019 revenues as early as this year, according to 

Taking to a press release, Kering said, “Though it remains highly dependent on developments in the health situation and associated restrictions across countries and regions, the luxury market has posted a significant rebound since the beginning of the year.

“A key player in this market, Kering is perfectly positioned to fully benefit from the upturn, having successfully safeguarded its profitability while maintaining the expenditure and investments required to strengthen its Houses and ensure their potential to bounce back. Kering pursues the steadfast implementation of its strategy and will continue to steer and allocate its resources towards supporting its operating performance, maintain high cash flow generation, and optimize return on capital employed.”