Global luxury & sports brands report diverse H1 FY24 results

Two luxury and two sports companies concluded their Q2 and H1 for FY24 (January to December 2024) on June 30, 2024. Their overall balanced performance resulted in one luxury and one sports company delivering strong performance, while the remaining luxury and sports companies delivered moderate and weak performance, respectively.

Strong: Growth in Both Sales & Profits

Brunello Cucinelli S.p.A. | (BIT: BC)

Board of Directors of Brunello Cucinelli S.p.A. – a Casa di Moda operating in the luxury goods sector, and listed on the Italian Stock Exchange, approved and released the press note on half-year financial reports of 2024 in August end.

Revenues of €620.7 million (~$688.45 million) was up 14.1 per cent at current exchange rates and 14.7 per cent at fixed exchange rates, compared to H1 2023. The growth is in line with the preliminary figures released on July 11. Operating Income amounting to €104.6 million (~$116 million) is also up 19.3 per cent over €87.7 million last year, with a margin of 16.9 per cent compared to 16.1 per cent as of June 30, 2023.

The strong performance is accredited to the positive contribution of the sales mix, including distribution channels, geographical areas and product mix, and the expansion of internal production achieved by opening manufacturing facilities to produce men's outerwear and tailored suits, within districts of excellence in artisan tailoring, such as the factory in Penne, Abruzzo in the second half of 2023 and more recently in Gubbio, Umbria.

The high quality of the revenues in H1 FY24, the business performance, the decent sales reported, and the punctuality of shipments made the Solomeo-based company expect a revenue growth around 10 per cent in FY24 outlook, with healthy and balanced profits.

Puma SE | (ETR: PUM)

German sports company Puma SE reported a positive second-quarter performance for FY24, highlighted by a currency-adjusted sales increase of 2.1 per cent to €2,117 million (~$2,348 million), despite a negative currency impact of approximately €50 million. The gross profit margin improved by 200 basis points to 46.8 per cent, despite significant currency headwinds. The Herzogenaurach-headquartered company saw a 4.3 per cent rise in operating expenses, reaching €879 million in the quarter. EBIT increased by 1.6 per cent to €117 million ($129.77 million), despite negative currency effects on sales, gross profit margin, and the OPEX ratio.

On a half-year basis, sales increased by 1.3 per cent to €4,219 million (~$4,680 million), while net income dropped by 25 per cent to €129.3 million (~$143.41 million), compared to €172.3 million (~$191.11 million) in H1 FY23. EPS amounted to €0.86 (~$0.95), down from €1.15 last year.

Based on the H1 FY24 results, supported by growing brand momentum and a strong order book for H2 FY24, Puma reiterated its full-year outlook for FY24, expecting mid-single-digit currency-adjusted sales growth. The company narrowed its EBIT outlook to a range of €620 million to €670 million, compared to the previous estimate of €620 million to €700 million.

Moderate: Growth in Either Sales or Profits

Amer Sports | (NYSE: AS)

Amer Sports reported its second-quarter performance for FY24, along with its Q3 and full-year FY24 outlook, on August 20, 2024.

Revenues for Q2 FY24 increased by 16 per cent to $994 million (up 18 per cent in constant currency) compared to the same quarter in 2023, including a 34 per cent increase in sales of technical apparel ($407 million) and an 11 per cent rise in outdoor performance sales ($304 million). The gross margin for the quarter improved by 220 basis points to 55.5 per cent, while the adjusted gross margin increased by 200 basis points to 55.8 per cent. However, a 26 per cent increase in operational expenses, reaching $560 million, led to an operating loss of $9 million, compared to an operating profit of $8 million in the second quarter of 2023. The operating margin declined by 180 basis points to 0.9 per cent, while net loss decreased by 98 per cent to $4 million, or $0.01 diluted loss per share.

For the third quarter ending on September 30, 2024, Amer Sports expects reported revenue growth of 12 to 13 per cent, a gross margin of approximately 54 per cent, and an operating margin of 11 to 12 per cent.

For the full FY24 outlook, the company expects reported revenue growth of 15 to 17 per cent, a gross margin of around 54.5 per cent, and an operating margin towards the high end of 10.5 to 11 per cent.

Amer Sports is a global group of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, and Atomic. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, the company operates in over 40 countries and sells its products in more than 100 countries.

Weak: No Growth in Sales & Profits

Salvatore Ferragamo S.p.A. | (EXM: SFER)

The board of directors of Salvatore Ferragamo S.p.A., the parent company of the Salvatore Ferragamo Group, approved and released the first-half results for FY24 in early August. The results were marked by revenues of €523 million (~$580 million), down 12.8 per cent at current exchange rates and 10.9 per cent in constant currency terms, compared to €600 million ($665.49 million) in 2023. Revenues in both the direct-to-consumer (DTC) and wholesale channels decreased, from €415 million to €382 million and from €167 million to €128 million, respectively, for the same period. Although the gross margin remained stable at 72.1 per cent of revenues, operating profit (EBIT) dropped by 41 per cent to €28 million ($31.06 million), and net profit declined by 73.2 per cent to €6 million ($6.65 million) compared to H1 FY23. The comparative net cash position as of June 30 was €167 million (~$185.23 million) in FY24, down from €278 million (~$308.34 million) in FY23.

For Q2 FY24, total revenues amounted to €296 million ($328.31 million), representing a 6 per cent decline at constant exchange rates and an 8.1 per cent decrease at current exchange rates, affected by a weak Asian market and challenging wholesale environment.

Salvatore Ferragamo S.p.A., the Italian luxury fashion house headquartered in Florence, Italy, specialises in apparel, footwear, and accessories.

Fibre2Fashion News Desk (WE - SB)