Business / Business of Luxury

Kering Group Boasts Robust Growth For Its H1 Financial Results

The owner of Gucci, Saint Laurent and Balenciaga has reported healthy growth in all of its brands across different geographic regions.

Jul 29, 2021 | By Joseph Low
Harry Styles in gucci
Image: Gucci

For the first half of 2021, the consolidated revenue of French luxury group Kering rose above expectations and amounted to €7.708 billion. Comparing the same period last year and in 2019, the Group grew by 54.1 per cent and 8.4 per cent respectively according to a press statement released on Tuesday.

Despite the woes of the pandemic, brands under the Group still managed to rake in sales. The cash cow of Kering is undoubtedly still Gucci. The Italian fashion house’s revenue for the first half of 2021 was at €4.47 billion, up by 45.8 per cent  — meaning the figures returned to pre-pandemic level. Around 91 per cent of the sales generated were attributed to its directly operated stores.

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The numbers are not surprising seeing how Gucci has retained the number one spot as the hottest brand according to The Lyst Index for two consecutive quarters. Under Alessandro Michele, the creative director of Gucci, the brand continuously created buzz.

This year marks the centenary anniversary of the Italian brand and it is without a doubt that there will be fanfare. Gucci’s “hacking” of sister brand Balenciaga for its Fall 2021 collection named “Aria”, the #GucciBeloved campaign with James Corden, and the launch of the Gucci Garden metaverse, all contributed to Gucci’s resounding success.

The Group’s other fashion labels — Saint Laurent and Bottega Veneta — also reported healthy growth. Sales at Saint Laurent amounted to €1.045 billion in the first half of 2021, up 53.5% as reported and 58.2% on a comparable basis. The brand also saw a sharp rebound in geographic regions such as North America and Asia Pacific — it has recently opened a flagship store in Seoul and named Blackpink’s Rosé as its global ambassador.

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For Bottega Veneta, revenue reported stood at €707.6 million. Under the stewardship of Daniel Lee, the creative director has made headlines for completely removing the brand from the social media sphere while also debuting its own online magazine. Its runway collections have also become a closed affair where only selected individuals were invited to the show.

Kering Group, François-Henri Pinault
François-Henri Pinault,Kering Group CEO. Image: Kering Group

“All our houses contributed to a sharp rebound in total revenue, which comfortably exceeded its 2019 level, with a remarkable acceleration in the second quarter,” François-Henri Pinault, chairman and chief executive officer of Kering, said in a statement.

“While returning to substantial profitability and leveraging the desirability of our brands, we are stepping up the pace of our investments in our houses and strategic initiatives, notably to enhance the exclusivity and control of our distribution,” he added.

Kering’s results come on the heels of figures from LVMH, which reported stellar growth that beat analysts’ expectations. The owner of Louis Vuitton and Dior had reported that the company earned €28.7 billion. From the financial results of the world’s top two luxury groups, it does signal that the appetite for luxury products is starting to pick up and it would be interesting to see how other groups are doing as well.

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