Tourism Rebound, Luxury Designer Demand Lifts Kering 1H Results

A rebound in travel combined with increased demand for luxury apparel pushed Kering to new financial heights in the first half of 2022, with the company’s revenue for the first six months of the year up 23% from the same period in 2021.

Kering’s group revenue — including Gucci, Yves Saint Laurent and its other high-profile brands—was 9,930 million euros (almost $10.1 billion) from January to June 2022, according to the company’s earnings report released Wednesday (July 27).

“The Group delivered sharply higher sales in the first half of 2022, sustaining last year’s topline momentum — solid performances in retail around the world more than offset the impact of Covid-related measures in China in the second quarter,” Chairman and CEO François-Henri Pinault said in the report. In addition to increased engagement with local consumers, “we are also leveraging the nascent rebound in tourism in Europe,” he added.

“Each of our Houses contributed to the strong double-digit increase in Group operating income, leading to expanded margin for Kering as a whole. In a period of heightened macro uncertainty, Kering is in great shape to surmount short-term challenges, take advantage of new opportunities, and support the ambitious strategies and tremendous prospects of all our brands,” he said.

In addition to a significant rise over 2021’s first half, the 2022 revenue results represented a 28% jump over 2019, the year before the COVID-19 pandemic began to spread around the world. Meanwhile, Kering’s sales were up 20% year over year in the second quarter of 2022. Retail network sales, including eCommerce, jumped 12% from the same three-month period in 2021.

Related: LVMH Q2 Focused on Managing Demand for Luxury Goods Instead of Being Economists

Earlier this week, the world’s largest consortium of luxury brands, LVMH, reported a 28% increase in total sales, including 31% for the company’s Fashion & Leather Goods business, which accounts for half its revenue, and 20, 22 and 23 percent respective topline growth at its Perfume & Cosmetics, Watches & Jewelry, and Wine & Spirits divisions.