French firm Kering's revenue at $9.76 bn in H1 FY24

In H1 FY24, Gucci generated revenue of €4.1 billion, down 20 per cent as reported and 18 per cent on a comparable basis. Sales from the directly operated retail network dropped by 20 per cent on a comparable basis, while wholesale revenue decreased by 9 per cent. Gucci's recurring operating income totalled €1 billion, with a recurring operating margin of 24.7 per cent, the company said in a press release.

Bottega Veneta had a record first half, achieving revenue of €836 million, unchanged as reported and up 3 per cent on a comparable basis. The directly operated retail network saw an 8 per cent increase in sales on a comparable basis, while wholesale revenue fell by 19 per cent. The house’s recurring operating income for H1 FY24 was €121 million, with a recurring operating margin of 14.5 per cent.

Revenue from Kering's other houses amounted to €1.7 billion in the first half of 2024, down 7 per cent as reported and 6 per cent on a comparable basis. Sales from the directly operated retail network increased by 1 per cent on a comparable basis, whereas wholesale revenue declined by 21 per cent.

In the second quarter of fiscal 2024 (Q2 FY24), Kering's revenue totalled €4.5 billion, reflecting an 11 per cent decline both as reported and on a comparable basis. This decline includes a negative currency effect of 1 per cent and a positive scope effect of 1 per cent due to the consolidation of Creed. Sales from the directly operated retail network fell by 12 per cent on a comparable basis, impacted by lower store traffic.

Gucci’s sales dropped by 19 per cent on a comparable basis in Q2 FY24, with a 20 per cent decline in the directly operated retail network. Performance across regions remained consistent with the previous quarter, with a significant decrease in Asia-Pacific.

Bottega Veneta’s revenue rose by 4 per cent on a comparable basis in Q2 FY24. The directly operated retail network saw a 7 per cent increase in sales on a comparable basis, driven by double-digit growth in Western Europe and North America, as well as strong momentum in the Middle East.

Sales in Asia-Pacific were resilient. Wholesale revenue decreased by 13 per cent. Sales from Kering's other houses in Q2 FY24 were down 5 per cent on a comparable basis. Sales from the directly operated retail network remained stable year-on-year on a comparable basis.

“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 Francois-Henri Pinault, chairman and chief executive officer.

Fibre2Fashion News Desk (DP)