Puma, Gucci Drive Kering In First-Half

Gucci Men's Spring 2017 Collection
Gucci men's spring '17 collection on the runway at Milan Men's Fashion Week.
Davide Maestri/Fairchild.

Robust Q2 trends — particularly in its Luxury and Sport & Lifestyle divisions — helped Kering SA pull off gains in profit and sales in the first half.

The parent company of luxury brands such as Balenciaga, Saint Laurent and Gucci said its first-half net income grew 9.9 percent, to 464.9 million euros, or $514.9 million, while revenues advanced 3.3 percent, to 5.7 billion euros, or $6.3 billion. Adjusted net income rose 6.5 percent year-over-year to 521 million euros, or $577 million.

“Overall growth in our luxury activities in the second quarter significantly outpaced the level reached in the first three months of the year,” François-Henri Pinault, Kering’s chairman and CEO, pointed out in a statement. “Gucci’s creative momentum and ambitious strategy, launched last year, are delivering tangible results: Sales growth is accelerating in the second quarter on top of tough comps; recurring operating income is up 7 percent in the first half. “

By division, Q2 revenues for the group gained 6.9 percent, luxury revenues increased 5.2 percent, and revenues in Sport & Lifestyle grew 11.4 percent.

Pinault attributed growth in the Sport & Lifestyle division to “healthy trends.”

Meanwhile, Puma brought in the lion’s share of revenues in that division, posting 1.7 billion euros, or $1.9 billion, in sales for the first half. (Puma’s revenues in the second quarter rose 7 percent to 826.5 million euros, or $915.4 million.)

First-half revenues at Gucci outperformed the company’s luxury division, at 1.9 billion euros, or $2.1 billion. (Second quarter revenues were 1.1 billion euros, or $1.2 billion.)

“In an environment that remains uncertain, we intend to carry out the steadfast implementation of our strategy and maintain a strict operating and financial discipline; together with the commitment of all our teams, this reinforces our confidence that we will progress along the current growth path,” Pinault said.

(All currency translations based on current exchange rates.)