Thursday, July 25, 2019
Very strong growth in revenue in the first half of 2019 - Sharp rise in recurring operating income and margin
Consolidated revenue: €7,638.4 million
up 18.8% as reported and 15.3% on a comparable basis
Recurring operating income : up 25.3% to €2,252.7 million
Recurring operating margin* up 160 basis points to 29.5%
Net income, Group share*: €579.7 million
Recurring net income, Group share**: up 24.7% to €1,556.1 million
“In the first half of the year, we delivered another very strong set of results. Kering’s revenue growth handily topped market trends, and was highly profitable. We created an additional 1.2 billion euros in revenue in the six months, and our operating margin reached a record 29.5 percent. Our strategy is clearly paying off. The success of our brands, built on creativity, innovation, and customer dedication, along with rigorous execution and financial discipline, are delivering a superior combination of organic growth and sustainable profitability.”
François-Henri Pinault, Chairman and Chief Executive Officer
- Total revenue generated by the Group’s Houses up 15.2% on a comparable basis to €7,364.4 million.
• Another period of outstanding growth for Gucci, with revenue up 16.3% on a comparable basis despite particularly high bases of comparison.
• Ongoing strong growth momentum for Yves Saint Laurent, with sales up 16.6% on a comparable basis.
• Contrasted period at Bottega Veneta (down 3.8% on a comparable basis), with a positive second quarter. New collections have been very well received.
• Excellent performances of Other Houses (up 20.3% on a comparable basis), powered by Balenciaga, Alexander McQueen and the Jewelry Houses.
- Very sharp rise in profitability: recurring operating income nearly doubled in the space of two years, significantly exceeding the €2 billion mark*, and recurring operating margin widened by 160 basis points versus first-half 2018*.
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 2018, Kering had nearly 35,000 employees and revenue of €13.7 billion.
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