French luxury firm Kering's revenue climbs to €10.1 bn in H1 FY23

The directly operated retail network of the group, including e-commerce sites, saw a 4 per cent YoY growth in H1 FY23. Asia-Pacific and Japan proved to be the key growth drivers, while Western Europe demonstrated solid performance. Conversely, North America recorded a decline in sales.

Despite continuous investments across its portfolio of houses, Kering reported a recurring operating income of €2.7 billion in H1 FY23, with a recurring operating margin of 27 per cent. The group's net income attributable stood at €1.8 billion in the first half of the year, Kering said in a press release.

In terms of individual performance, Gucci, Kering's flagship brand, saw its H1 revenue slightly drop by 1 per cent as reported to €5.1 billion, but managed a 1 per cent YoY rise on a comparable basis. Sales in the directly operated retail network also grew 1 per cent YoY on a comparable basis. However, Gucci's wholesale revenue fell 3 per cent on a comparable basis compared to H1 FY22. Gucci's recurring operating income amounted to €1.8 billion in H1 FY23, which reflects a recurring operating margin of 35.3 per cent.

Yves Saint Laurent’s H1 FY23 revenue rose to €1.6 billion, an increase of 6 per cent YoY as reported and 7 per cent YoY on a comparable basis. Directly operated retail network sales rose by 11 per cent YoY, albeit wholesale revenue decreased by 10 per cent YoY, aligning with the house's strategy to streamline this channel. Yves Saint Laurent achieved a recurring operating income of €481 million in H1, reflecting a recurring operating margin of 30.5 per cent.

Meanwhile, Bottega Veneta's H1 FY23 revenue remained steady as reported at €833 million but saw a 2 per cent YoY increase on a comparable basis. The house's recurring operating income for the first half totalled €169 million, taking its recurring operating margin to 20.3 per cent.

The group's other houses, including Balenciaga, Alexander McQueen, and Brioni, reported a combined revenue of €1.9 billion in H1 FY23, marking a 5 per cent YoY decrease both as reported and on a comparable basis. Despite the overall drop, the group observed an improvement between the first and second quarters. Recurring operating income from these houses was €224 million, and recurring operating margin stood at 12.1 per cent.

Fibre2Fashion News Desk (DP)