Kering 1st Half Profit, Sales Rose as Gucci Recovers Strongly

By Joshua Kirby

Kering's earnings and revenue climbed strongly in the first half, as main brand Gucci recovered to pre-pandemic sales levels.

Net profit in the six months to end-June rose to 1.48 billion euros ($1.75 billion) from EUR272.6 million in the first half of 2020, as sales increased to EUR8.05 billion from EUR5.38 billion, the French luxury-goods conglomerate said Tuesday. This beat analyst expectations of EUR7.86 billion in sales, according to a FactSet-compiled consensus.

The group made recurring operating income of EUR2.24 billion, more than doubling from EUR952.4 million in the previous-year period.

Revenue at powerhouse brand Gucci increased by 46% to EUR4.48 billion. Gucci, which lagged some big fashion rivals during the pandemic--partly as a result of its high exposure to travel retail--continues to strengthen its position with local customers, Kering said.

Yves Saint Laurent and Bottega Veneta posted similar sales increases, while revenue at other houses climbed 61% on year.

Group sales had a strong exit rate, almost doubling on year in the second quarter, Kering said. Looking ahead, the company said it was confident of benefiting from a strong rebound in demand for luxury goods.

Kering remains active in the field of mergers and acquisitions, Chief Financial Officer Jean-Marc Duplaix said in a conference call, pointing to the recent acquisition of Danish eyewear maker Lindberg.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

July 27, 2021 11:54 ET (15:54 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.