• H1 earnings reach EUR465m (US$515.9m)
  • Gross margin widens to 63.3%
  • Revenues up 3.3% to EUR5.69bn
Gucci boosted Kerings results for H1

Gucci boosted Kering's results for H1

French luxury goods group Kering has booked a "pleasing" second-half, with turnaround growth from the firm's powerhouse Gucci label boosting earnings. 

Earnings reached EUR465m (US$515.9m) in the first six months of the year, from EUR423m a year earlier. Gross margin widened to 63.3% from 61.7%. 

Consolidated revenues for the first half climbed 3.3% to EUR5.69bn from EUR5.51bn in the year ago period, hit slightly by exchange rate fluctuations. Comparable sales growth, however, was solid, in both of Kering's mature markets, led by Western Europe and Japan, and emerging markets.

Gucci was the standout performer for Kering in the first half, with the appointment of new creative director Alessandro Michele last year starting to pay dividends. The brand achieved 3.9% sales growth to EUR1.95bn thanks to a makeover last year and a new management team following a slump in sales.

Puma also shined, with revenue totalling EUR1.69bn, up 5.3% on a reported basis, with gross margin rising sharply at constant exchange rates thanks to price increases and better procurement conditions.

"We are pleased with the performances we have delivered in the first half of 2016," said CEO François-Henri Pinault. "In an environment that remains uncertain, we intend to carry out the steadfast implementation of our strategy and maintain a strict operating and financial discipline; together with the commitment of all our teams, this reinforces our confidence that we will progress along the current growth path."