French luxury group Kering has reported almost doubling revenue for the second quarter of the year amid strong Gucci sales as the luxury industry continues to recover from the pandemic.
In the three months to June 30, comparable revenue at the group surged to 4.16 billion euros, up 95 percent from the prior year and 11.2 percent higher than 2019 levels on a comparable basis.
In retail, including e-commerce, second-quarter sales surged 97.9 percent, driven by particularly strong performances in North America (263 percent) and Asia-Pacific (53 percent) as shoppers splashed out on luxury items after emerging from lockdown.
Breaking it down by brand, Gucci was the standout performer, with first-half sales up 45.8 percent on a reported basis to 4.48 billion euros. At Yves Saint Laurent, sales in the first half increased 53.5 percent to 1.05 billion euros, while sales at Bottega Veneta were up 40.6 percent to 707.6 million euros.
Revenue from Kering’s Other Houses was up 60.5 percent to 1.48 billion euros.
Kering H1 sales ahead of 2019 levels
For the first half of the year, Kering reported consolidated revenue of 8.05 billion euros, up 54.1 percent from the prior year and 8.4 percent higher than 2019 levels.
The company posted a net income of 569.3 million euros while operating income stood at 2.24 billion euros. Its operating margin was 27.8 percent.
Kering chairman and CEO François-Henri Pinault said the group is “stepping up the pace” of investments in its houses and strategic initiatives, “notably to enhance the exclusivity and control of our distribution”.
He said in a statement: “Kering delivered excellent performances in the first half and resumed its trajectory of strong, profitable growth. All our Houses contributed to a sharp rebound in total revenue, which comfortably exceeded its 2019 level, with a remarkable acceleration in the second quarter.”
This is the latest sign of recovery of the luxury industry which was hit hard by international store closures during the pandemic. Kering rival LVMH on Tuesday reported a 56 percent increase in revenue to 28.67 billion euros for the first half of the year.