Tuesday, July 28, 2020
Strong resilience in unprecedented health crisis - Solid Operating Margin
Consolidated revenue: €5,378.3 million,
down 29.6% as reported
and 30.1% on a comparable basis
Recurring operating income: €952.4 million
Recurring operating margin of 17.7%
Net income, Group share of €272.6 million
Recurring net income, Group share 1: €569.3 million
“It is fair to say that the first half of 2020 has been the toughest period we have faced - we stand in solidarity with all who are suffering through this situation and acknowledge the remarkable contribution of all our associates. Our results today underscore the extent of the disruption exacted by the pandemic on our operations. Even more importantly, the resilience of our performances validates our model and supports our confidence that we will come out of this crisis even stronger. We entered 2020 in a particularly solid position - our global scale, the desirability and agility of our brands, and our values of sustainability and responsibility, all are key assets in weathering current conditions. Our strategic vision is only reinforced by the crisis and, with the benefit of our sound financials, innovativeness and digital expertise, we are pursuing its implementation with consistency and determination.”
François-Henri Pinault, Chairman and Chief Executive Officer
- Consolidated revenue of €5,378.3 million in the first half of 2020, down 29.6% as reported and 30.1% on a comparable basis. Consolidated revenue of €2,175.1 million in the second quarter, down 43.5% as reported and 43.7% on a comparable basis.
o After an excellent start to the year, a first half heavily impacted by store closings and a halt to tourism.
o An encouraging recovery as stores reopened, particularly in the Asia-Pacific region, led by Mainland China.
o Sharp acceleration of online sales, up 47.2% in the first six months of the year and up 72.4% in the second quarter.
- Resilient profitability, with recurring operating income of €952.4 million, yielding an operating margin of 17.7%, thanks to adjustment of the Group’s cost base. Ongoing investment to bolster the market positions of the Group’s Houses and prepare for the future.
1 Recurring net income, Group share: net income from continuing operations, Group share, excluding non-recurring items.
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination”. In 2019, Kering had nearly 38,000 employees and revenue of €15.9 billion.
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