Luxury conglomerate Kering reported a challenging first half of 2024, with group revenue declining by 11% to \u20ac9.01 billion. The company attributed the downturn to a difficult market environment that impacted both top-line growth and profitability.<\/p>\n
While Kering\u2019s jewellery houses, Boucheron and Pomellato, demonstrated double-digit growth, the overall performance of the jewellery sector was overshadowed by declines in other key brands like Gucci and Yves Saint Laurent.<\/p>\n
Gucci, Kering\u2019s flagship brand, experienced a 20% decline in revenue to \u20ac4.1 billion, impacted by lower store traffic and a decrease in sales in the Asia-Pacific region. Yves Saint Laurent also faced challenges, with revenue dropping by 9% to \u20ac1.4 billion.<\/p>\n
Despite the headwinds, Kering remains optimistic about its long-term prospects. The company has doubled down on investments to enhance its product offerings, strengthen brand communications, and maintain exclusive distribution networks.<\/p>\n
\u201cWe are working assiduously to create the conditions for a return to growth,\u201d said Fran\u00e7ois-Henri Pinault, Chairman and CEO of Kering. \u201cWhile the current context might impact the pace of our execution, our determination and confidence are stronger than ever.\u201d<\/p>\n
Kering\u2019s financial performance was further impacted by a 42% decline in recurring operating income to \u20ac1.6 billion, reflecting increased investments in the business. However, the company maintained a strong cash position, with free cash flow from operations reaching \u20ac1.9 billion.<\/p>\n
Looking ahead, Kering anticipates a challenging second half of the year, with recurring operating income potentially declining by approximately 30% compared to the same period last year. The company is focusing on cost optimisation measures while continuing to invest in its long-term growth strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"
Luxury conglomerate Kering reported a challenging first half of 2024, with group revenue declining by 11% to \u20ac9.01 billion. The company attributed the downturn to a difficult market environment that impacted both top-line growth and profitability. While Kering\u2019s jewellery houses, Boucheron and Pomellato, demonstrated double-digit growth, the overall performance of the jewellery sector was overshadowed…<\/p>\n","protected":false},"author":1,"featured_media":26958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"thb-sponsors":[],"class_list":["post-26957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bulletin"],"acf":[],"yoast_head":"\n