Industry News
Kering Eyewear Achieves Record Global Revenues of €869 Million in H1 2023
In light of the Kering Group's first-half fiscal results released recently, Kering Eyewear has reported remarkable success, with global revenues hitting a record €869 million during the first six months of 2023. This represents an impressive 51 percent increase compared to sales of €591 million in the same period of the previous year. The company acknowledged that "the significant contribution of Maui Jim" played a crucial role in this growth. On a comparable basis, Kering Eyewear's overall sales showed a strong 16 percent increase. In the second fiscal quarter alone, the company witnessed a remarkable 58 percent rise in sales and sustained sales growth of 21 percent on a comparable basis.
Notably, Kering Eyewear's recurring operating income for the first half soared to €186 million. After factoring in corporate costs of €123 million during this period, the Kering Eyewear and Corporate segment of the Kering Group reported a recurring operating income of €63 million.
Kering Group, known for managing several prestigious fashion, leather goods, and jewelry houses including Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté, reiterated some of the new organizational and governance changes implemented for the oversight of its luxury brand portfolio. Additionally, it was announced that Kering Group and Mayhoola have entered into a binding agreement for Kering to acquire a 30 percent shareholding in Valentino, for €1.7 billion in cash. The agreement includes an option for Kering to acquire 100 percent of Valentino's share capital no later than 2028. This strategic partnership with Mayhoola may also lead to Mayhoola becoming a shareholder in Kering Group. The transaction is expected to be completed by the end of 2023, subject to approvals.
Overall, Kering Group reported first-half revenue of €10.2 billion, a 2 percent increase on both a reported and comparable basis. The recurring operating income was €2,739 million, while net income attributable to the group reached €1,785 million.
François-Henri Pinault, Chairman, and CEO of Kering Group, expressed satisfaction with the first-half performance, stating, "In the first half, we pursued our investments in our Houses’ desirability and exclusivity. While engaging in critical forward-looking initiatives, we maintained a high level of profitability. We also took some decisive steps to expand our footprint in the luxury universe, notably with the acquisition of the famed Creed fragrance house to accelerate the liftoff of Kering Beauté. Together with the major organizational changes we announced last week to enhance stewardship of our Houses, as well as the many projects we have already launched over the past few months, the developments of the first half strengthen my confidence in Kering’s future prospects.”
