Kering Upbeat on Future Growth as US, Europe Sales Offset 1st Half China Lockdowns
27 Luglio 2022 - 06:16PM
Dow Jones News
By Joshua Kirby
Kering said Wednesday that it is confident of growth ahead after
first-half revenue and earnings rose in line with expectations,
despite slower sales in the second quarter amid lockdowns in
China.
The French luxury-goods group made recurring operating profit of
2.82 billion euros ($2.85 billion) in the first half, up 26%
compared with the year-earlier period. The operating margin rose to
28.4%, while net profit increased 34% to EUR1.99 billion, Kering
said.
Second-quarter sales rose 12% on a comparable basis to EUR4.97
billion, a sequential slowing from the 21% booked the previous
quarter, and in line with expectations of EUR4.84 billion,
according to a pre-results poll of analysts' estimates taken from
FactSet.
Main brand Gucci made quarterly sales of EUR2.58 billion, rising
4% on year, also in line with analysts' forecasts.
Kering noted the effects of lockdowns in China, but said retail
growth elsewhere had more than offset the negative impact. In a
call with reporters, Chief Financial Officer Jean-Marc Duplaix
pointed to the very mixed results across different markets, with
many stores closed in China in April and May, but said U.S. sales
were strong and tourism in Europe continued to rebound.
"In a period of heightened macro uncertainty, Kering is in great
shape to surmount short-term challenges, take advantage of new
opportunities, and support the ambitious strategies and tremendous
prospects of all our brands," the company said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
July 27, 2022 12:01 ET (16:01 GMT)
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