Kering’s group revenue in the first half of the year was 9.1 billion euros, down 11 percent from the previous year and on a comparable basis. Revenue in the second quarter was 4.5 billion euros, down 11% as reported and comparable.
Recurring operational income dropped 42% to 1.6 billion euros, while net income attributable to the group was 878 million euros.
Given the uncertainties surrounding the evolution of demand from luxury consumers in the coming months following the downturn seen in the first half of 2024, Kering forecasts second-half recurring operating income to fall by around 30%.
“In a challenging market environment that puts pressure on our top line and profitability, we are working hard to create the conditions for a return to growth,” said François-Henri Pinault, Kering’s chairman and CEO.
Kering has reported a decline in revenue across retail channels.
According to the company’s press release, sales from Kering’s directly controlled retail network fell by 12 percent on a comparable basis in the second quarter, owing to decreased store attendance.
In comparison to the first quarter, the company experienced a sequential improvement in Japan and a deceleration in Asia-Pacific.
Kering’s wholesale and other revenue fell 6% on a comparable basis, while Kering eyewear continued its upward trend.
Gucci’s revenue for the first half was 4.1 billion euros, down 20% as reported and 18% on a comparable basis. Sales from the directly operated retail network declined by 20 percent on a comparable basis, while wholesale revenue was down 9 percent.
In the second quarter, the House’s sales were down 19 percent on a comparable basis, with a 20 percent decline in the directly controlled retail network. Gucci experienced a continued, significant decline in the Asia-Pacific. Gucci’s recurrent operating income was 1 billion euros, and the recurring operating margin was 24.7%.
Bottega Veneta’s revenue of 836 million euros remained constant and increased by 3 percent on a comparable basis. Sales from the directly operated retail network increased by 8% on a comparable basis, while wholesale revenue decreased by 19%.
In the second quarter, the House’s revenue increased by 4 percent on a comparable basis. Sales in the directly operated retail network increased by 7% on a similar basis, driven by double-digit growth in Western Europe and North America and solid momentum in the Middle East. Sales in Asia-Pacific remained resilient. Wholesale revenue was down 13%.
The Other Houses’ revenue in the first half was 1.7 billion euros, down 7% as reported and 6% on a comparable basis. Sales from the directly operated retail network increased by 1% on a comparable basis, while wholesale fell by 21%. Sales in the second quarter were down 5% on a comparable basis. The wholesale revenue of other houses fell by 16 percent.
In the first half, the Kering Eyewear and Corporate sector generated 1.1 billion euros in revenue. Kering Eyewear’s revenue was 914 million euros, up 5%, as reported, and 6% on a comparable basis. In the second quarter, revenues increased by 3% on a comparable basis, as reported.
