Retail in Asia


Kering first-half profits hit new record on strong Q2 sales, Asia stabilises

Kering Group announced that revenues for the first half of 2022 increased by 16%, on the back of a 20 percent uptick in company sales for the second quarter ending 30th June.

SEE ALSO : Kering Q1 sales down seven percent in Asia-Pacific as Japan remains flat

The French luxury group recorded half-year sales of EUR 9.9 billion (USD 10.1 billion), up from EUR 8.04 billion (USD 8.208 billion) in the prior-year half, and up 16 percent on a comparable basis compared to the first six months of 2021. Group revenue also rose sharply compared to the first half of 2019, up 28 percent on a comparable basis.

As a result, the company saw net income attributable to the group hit a new record of EUR 1.99 billion (USD 2.03 billion), an increase of 34 percent.

By brand, Gucci first-half revenue amounted to EUR 5.2 billion (USD 5.3 billion), an increase of 15 percent as reported and 8 percent on a comparable basis. In the second quarter, Gucci revenue was up 12 percent as reported and up 4 percent on a comparable basis. Growth in sales in the directly operated retail network were robust in Western Europe, Japan, and North America, more than offsetting the impact of lockdowns in China. Momentum was also very strong in Southeast Asia for Gucci, the company said.

Yves Saint Laurent revenue in the first half totalled EUR 1.5 billion (USD 1.52 billion), up 42 percent as reported and up 34 percent on a comparable basis. YSL sales in the second quarter rose by 40 percent as reported and by 31 percent on a comparable basis, driven by Western Europe, Japan and North America, while revenue in Asia-Pacific was stable compared to 2021, with little growth.

Likewise, Bottega Veneta revenues amounted to EUR 834 million (USD 851.45 million), an increase of 18 percent as reported and 13 percent on a comparable basis. In the second quarter, Bottega Veneta’s revenue was EUR 438 million (USD 447 million), up 15 percent as reported and up 10 percent on a comparable basis. 

Kering’s other houses segment continued to achieve very strong growth, with revenue close to EUR 2 billion (USD 2.04 billion) in the first half, up 32 percent as reported and up 29 percent on a comparable basis. For the second quarter, other houses sales rose 28 percent as reported and 24 percent on a comparable basis. Both Balenciaga and Alexander McQueen maintained their very strong growth trajectories, and Brioni confirmed its rebound, the company continued.

“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,” said François-Henri Pinault, chairman and CEO.

SEE ALSO : Kering scores record sales growth in 2021, Gucci and Saint Laurent remain strong

“We intensify our engagement with local customers across all markets, and we are also leveraging the nascent rebound in tourism in Europe. Each of our houses contributed to the strong double-digit increase in group operating income, leading to expanded margin for Kering as a whole.”