The luxury group chaired by François-Henri Pinault, still weighed down by its flagship brand Gucci, saw its revenue fall further in the first half of the year, with profitability declining even more sharply. The group is counting on its future CEO and three new creative directors, including Demna at Gucci, to turn the situation around.
As it sinks deeper into the storm, Kering is hoping that its future captain, Luca de Meo, the former boss of Renault, who is expected to take up his new position as CEO in mid-September, will steer it back to brighter horizons.
The luxury group chaired by François-Henri Pinault saw its revenue fall by 15% on a comparable basis (16% on a reported basis) to €7.58 billion in the first half of the year. The situation has thus deteriorated compared to the first quarter, when the decline was “only” 10% on a comparable basis.
An expected decline
Current operating profit plunged 39% to €969 million, with the operating margin falling to 12.8% from 17.5% a year earlier. However, this comes as no surprise: when the first-quarter sales figures were released, François-Henri Pinault had indicated that he expected a 40-45% drop in current operating income for the first six months of the year.
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Featured photos: © Kering
