First-half 2023 results

Group revenue: €10,135 million,

up 2% as reported and on a comparable basis

Recurring operating income: €2,739 million

Net income attributable to the Group: €1,785 million

"In the first half, we pursued our investments in our Houses’ desirability and exclusivity. While engaging in critical forward-looking initiatives, we maintained a high level of profitability. We also took some decisive steps to expand our footprint in the luxury universe, notably with the acquisition of the famed Creed fragrance house to accelerate the liftoff of Kering Beauté. Together with the major organizational changes we announced last week to enhance stewardship of our Houses, as well as the many projects we have already launched over the past few months, the developments of the first half strengthen my confidence in Kering’s future prospects.”

François-Henri Pinault, Chairman and Chief Executive Officer

• Group revenue amounted to €10.1 billion in the first half of 2023, an increase of 2% both as reported and on a comparable basis. 
  - In the second quarter of 2023, sales rose 2% as reported and 3% on a comparable basis.
  - Revenue from the directly operated retail network, which includes e-commerce sites, grew 4% on a comparable basis in the second quarter, with good performances in Asia-Pacific and Japan. Growth in Western Europe was solid, while sales fell in North America.

• Against a background of ongoing investments in the Group’s Houses, recurring operating income amounted to €2.7 billion in the first half. Recurring operating margin was 27.0%.

• Net income attributable to the Group was €1.8 billion in the first half of 2023.

• Free cash flow from operations, excluding real-estate acquisition and disposal, remained high at €2.1 billion during the first half, up 4%.

Gucci: further investment 

Gucci’s first-half 2023 revenue amounted to €5.1 billion (down 1% as reported and up 1% on a comparable basis). Sales in the directly operated retail network grew 1% on a comparable basis. Wholesale revenue dropped 3% on a comparable basis compared to the first half of 2022. 

In the second quarter of 2023, Gucci’s revenue rose 1% on a comparable basis. Sales from directly operated stores were also up 1%, driven by strong sales of Gucci’s most exclusive products and by its leather goods, travel, and women’s collections.

Gucci’s recurring operating income totaled €1.8 billion in the first half of 2023. This equates to recurring operating margin of 35.3% and reflects investments made to continue the House’s strategic initiatives.

Yves Saint Laurent: a highly desirable brand, another period of growth

Yves Saint Laurent’s first-half 2023 revenue amounted to €1.6 billion, up 6% as reported and up 7% on a comparable basis. Sales from the House’s directly operated retail network rose by 11% on a comparable basis, while wholesale revenue was down 10%, in line with the strategy of streamlining this channel.

In the second quarter of 2023, sales rose 7% on a comparable basis, thanks to good performance in the directly operated retail network (up 8%), driven by ready-to-wear and leather goods. 

Yves Saint Laurent’s recurring operating income was €481 million in the first half and recurring operating margin was 30.5%.

Bottega Veneta: strengthened exclusivity

Bottega Veneta’s first-half 2023 revenue totaled €833 million, unchanged as reported and up 2% on a comparable basis. Sales from the directly operated retail network were buoyant (up 6% on a comparable basis), while wholesale revenue fell 13% on a comparable basis.

The House’s sales in the second quarter of 2023 rose by 3% on a comparable basis, driven by healthy growth in the directly operated retail network (up 7%).

Bottega Veneta’s recurring operating income in the first half of 2023 totaled €169 million, taking its recurring operating margin to 20.3%.

Other Houses: growth in the directly operated retail network, excellent momentum in Jewelry

Sales by the Group’s Other Houses in the first half of 2023 totaled €1.9 billion (down 5% as reported and on a comparable basis), with a significant improvement between the first and second quarters. There was strong momentum in the directly operated retail network, with sales up 8% on a comparable basis. Wholesale revenue fell 27% as all Houses pursue their strategy of streamlining this channel, and reflecting the mixed American market.

In the second quarter of 2023, revenue from the directly operated retail network rose by 9% on a comparable basis, all Houses contributing to growth. Balenciaga began its recovery, driven in particular by the Asia-Pacific region. Alexander McQueen’s ready-to-wear performed well, while Brioni made good progress. The Group’s Jewelry Houses – Boucheron, Pomellato and Qeelin – maintained their strong growth trajectory, each delivering double-digit growth. 

Recurring operating income from the Other Houses in the first half of 2023 amounted to €224 million, and recurring operating margin was 12.1%.

Kering Eyewear and Corporate: a record six months for Kering Eyewear

Kering Eyewear’s first-half 2023 revenue hit a record €869 million, an increase of 51% as reported thanks to the significant contribution of Maui Jim and up 16% on a comparable basis. 

In the second quarter, sales growth was once again sustained, with growth of 21% on a comparable basis – driven by the successful development of its brand portfolio – and 58% as reported.

Kering Eyewear’s first-half recurring operating income rose sharply to €186 million. 

After taking into account Corporate costs of €123 million during the period, the Kering Eyewear and Corporate segment’s recurring operating income amounted to €63 million.

Financial performance

Net financial expense totaled €204 million in the first half of 2023. 

The effective tax rate on recurring income was 27.1%.

Net profit attributable to the Group was €1.8 billion. 

Cash flow and financial position 

The Group’s free cash flow from operations totaled €823 million in the first half of 2023. Excluding real estate activities, it was €2.1 billion.

At June 30, 2023, Kering’s net debt amounted to €3.9 billion.

Outlook

To achieve its long-term vision, Kering invests in the development of its Houses, so that they continuously strengthen their desirability and the exclusivity of their distribution, strike a perfect balance between creative innovation and timelessness, and achieve the highest standards in terms of quality, sustainability, and experience for their customers. 

In an environment of ongoing economic and geopolitical uncertainty in the near term, Kering will continue to execute on its strategy and vision, in pursuit of two key ambitions: to maintain a trajectory of profitable growth resulting in high levels of cash flow generation and return on capital employed, and to confirm its status as one of the most influential groups in the Luxury industry. 

***

In its meeting on July 27, 2023, Kering’s Board of Directors, chaired by François-Henri Pinault, approved the consolidated financial statements for the six months ended June 30, 2023, which were subject to a limited review.

About Kering

A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ginori 1735 as well as Kering Eyewear and Kering Beauté. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination”. In 2022, Kering had over 47,000 employees and revenue of €20.4 billion.

Contacts

Press

Emilie Gargatte      +33 (0)1 45 64 61 20   emilie.gargatte@kering.com   

Marie de Montreynaud    +33 (0)1 45 64 62 53    marie.demontreynaud@kering.com

Analysts/investors

Claire Roblet     +33 (0)1 45 64 61 49   claire.roblet@kering.com

Julien Brosillon     +33 (0)1 45 64 62 30   julien.brosillon@kering.com