Weak euro helps boost sales at luxury group Kering

A weak euro helped boost sales at French luxury group Kering in the first half of this year although growth at its leading Gucci brand trailed other divisions.

The group said Wednesday that overall sales rose by 16 percent on a comparable basis and 23 percent on a reported basis to 9.93 billion euros ($10.04 billion), with the difference primarily due to currency effects.

Net profits rose by 34 percent from the same period last year to 1.99 billion euros.

Growth slowed in the second quarter, although Kering said that robust performance in Western Europe, Japan and North America more than offset the impact of Covid-19 lockdowns in China.

China has fuelled growth for luxury brands in recent years, so extended pandemic disruptions in that market could weigh heavily on performance.

Kering did not provide a geographical breakdown of sales.

Gucci is by far Kering’s top division, accounting for more than half of total sales, but sales growth at the Italian luxury house trailed at 15 percent in reported terms.

Sales at Yves Saint Laurent jumped by 42 percent, and rose by 18 percent at Bottega Veneta.

Kering was also able to widen its recurring operating margin, increasing it by six-tenths of a percentage point to 28.4 percent.

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