BUSINESS Kering Group Reports Strong Results for First Half 2022 By Staff Friday, July 29, 2022 12:24 AM PARIS—Kering Group, which includes Kering Eyewear, turned in a strong financial performance in the first half of 2022, ending June 30. In the first six months of 2022, the Group’s revenue reached €9,930 million. This is a growth of 23 percent as reported and 16 percent on a comparable basis compared to the first six months of 2021. In addition, Group revenue rose sharply compared to the first half of 2019, up 28 percent on a comparable basis. In the second quarter of 2022 specifically, sales rose by 20 percent as reported and 12 on a comparable basis; this different is mainly due to currency effects, the Group said. Sales from the directly operated retail network, including e-commerce, were up 12 percent year-on-year on a comparable basis in the second quarter and up 32 percent compared to the second quarter of 2019. The Group reports that this is driven by the success of Kering’s Houses with local customers and the resumption of tourism in Western Europe.François-Henri Pinault, chairman & CEO of Kering Group, said, “The Group delivered sharply higher sales in the first half of 2022, sustaining last year’s topline momentum—solid performances in retail around the world more than offset the impact of COVID-related measures in China in the second quarter. We intensify our engagement with local customers across all markets, and we are also leveraging the nascent rebound in tourism in Europe. Each of our Houses contributed to the strong double-digit increase in Group operating income, leading to expanded margin for Kering as a whole. 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 Group’s recurring operating income, €2,820 million, grew 26 percent in the first half of 2022, with all Houses contributing to this growth; recurring operating margin was 28.4 percent, up 60 basis points from the first half of 2021. The Group’s net income hit a new record of €1,988 million, an increase of 34 percent. The Group generated free cash flow from operations of more than €2 billion. For the Kering Eyewear and corporate segment in particular, revenue amounted to €591 million. Kering Eyewear’s revenue totaled €576 million, up 50 percent as reported including the integration of Lindberg, and up 26 percent on a comparable basis. In the second quarter of 2022, Kering Eyewear rose 17 percent on a comparable basis. The acquisition of Maui Jim will be completed in the second half of 2022. Finally, in the first half of the year, Kering Eyewear’s recurring operating income more than doubled relative to the first half of 2021, reaching €111 million. The House benefited from the integration of Lindberg and from the seasonality of its sales, a majority of which occur in the first half of the year. Corporate costs were stable. Kering Group’s strongest performing house in the first half of 2022 was Gucci, followed by Yves Saint Laurent and then Bottega Veneta. In the first half of 2022, Gucci’s revenue amounted to €5,173 million, an increase of 15 percent as reported and 8 percent on a comparable basis. Sales from the directly operated retail network rose 8 percent on a comparable basis, while wholesale was up 9 percent. The effective tax rate on recurring income was 27.5 percent while net income attributable to the Group was €1,988 million. Earnings per share rose 36 percent, and as of June 30, 2022, Kering had a net debt of €942 million.