Paris, France – Kering posted revenue of €5,512.5 million in first-half 2015, up 17% on a reported basis and up 3.5% on a comparable Group structure and exchange rate basis. Exchange rate fluctuations during the six months had a positive impact on revenue. Sales growth in mature markets was once again buoyant (up 5.5% based on comparable data), driven by Western Europe and Japan, while sales in emerging markets were stable. Revenue generated outside the eurozone accounted for 79% of total consolidated revenue in first-half 2015.
Kering’s recurring operating income amounted to €773 million in the first six months of 2015, down 5.4% from first-half 2014 on a reported basis, and consolidated recurring operating margin amounted to 14.0%. Recurring operating margin was down in Luxury activities, chiefly due to exchange rate fluctuations. Recurring operating margin in Sport & Lifestyle amounted to 2.2%.
The Group’s gross margin for the first half of 2015 stood at €3,399 million, up €397 million, or up 13.2% as reported.
Consolidated EBITDA came to €972 million, in line with the first-half 2014 figure as reported, and the EBITDA margin narrowed by 3 points on a reported basis to 17.6%.
Net income, Group share totalled €423 million in the first six months of 2015 versus €185 million for the same period of 2014. Adjusted for non-recurring items, net income from continuing operations, Group share, totalled €489 million. Earnings per share amounted to €3.36 in the first six months of 2015, up sharply compared to first-half 2014.
- €5,513 million, up 17.0% (up 3.5% on a comparable basis)
- Luxury activities: €3,762 million, up 17.8% (up 2.8% on a comparable basis)
- Group: €773 million – Operating margin: 14.0%
- Luxury activities: stable at €806 million – Operating margin: 21.4%
- Sound growth in Luxury sales
- New creative impetus at Gucci
- Good sales dynamic at Bottega Veneta
- Robust growth at Yves Saint Laurent
- Ongoing growth at Puma driven by relaunch plan
- Resilient margins despite negative impact of currency hedges.
François-Henri Pinault, Kering’s Chairman and Chief Executive Officer, commented: “Kering delivered a sound performance in the first half of 2015, buoyed by strong sales growth in the second quarter in a volatile economic and currency environment. Our integrated, responsive business model enables us to capture growth in the most dynamic markets. Our Luxury activities, lifted by sales in our directly operated stores across mature markets, continued on a strong upward trend, reflecting the relevance of our strategy and the action plans in place. We are particularly satisfied with the progress at Gucci and the positive reception given to the brand’s new creative direction. As we enter the second half of the year, I am fully confident in the Group’s ability to combine strict management discipline with organic growth at each of our brands.”
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