Industry News
Kering Reports Challenging First Half of 2024
Kering has released its financial results for the first half of 2024, revealing a challenging market environment that has impacted the luxury group's performance. The key highlights from the report include:
- Group revenue amounted to €9.0 billion, down 11% both as reported and on a comparable basis.
- Recurring operating income fell significantly by 42% to €1.6 billion, resulting in a recurring operating margin of 17.5%.
- Net income attributable to the Group stood at €878 million for the first half of 2024.
- Free cash flow from operations remained robust at €1.9 billion, benefiting from effective inventory management.
The performance of Kering's individual brands was mixed:
- Gucci saw revenues drop 20% to €4.1 billion.
- Yves Saint Laurent revenue decreased 9% to €1.4 billion.
- Bottega Veneta achieved a record first half with revenues of €836 million, up 3% on a comparable basis.
- Other Houses generated €1.7 billion, down 7%.
- Kering Eyewear reported a positive trend, with revenues rising 6% on a comparable basis to €914 million.
“In a challenging market environment, which adds pressure on our top line and profitability, we are working assiduously to create the conditions for a return to growth. Our Houses pursue their investments to enrich their offer, intensify the impact of their communications, and reinforce the exclusivity of their distribution. We make certain that every one of these investments creates value for the long term. While the current context might impact the pace of our execution, our determination and confidence are stronger than ever.”, said François-Henri Pinault, Chairman and Chief Executive Officer of Kering.
Looking ahead, Kering anticipates a potential 30% decline in recurring operating income for the second half of 2024 compared to the same period in 2023, driven by ongoing economic uncertainties. The group remains committed to strategic investments that bolster the desirability and exclusivity of its brands.
