Kering +11% on 2019: “We will make acquisitions, but there are few targets”

Kering +11% on 2019: “We will make acquisitions, but there are few targets”

There is no doubt. Kering is looking for a target to acquire. Jean-Francois Palus (general director of the French group) confirmed it by highlighting the main difficulties tied to the search: “the lack of luxury targets. We are observing the market, working to find the best target at good conditions. That’s what we have done in the past and what we will continue to do in the future”. A statement that arrives at a time when Kering is published its sales data for the second quarter: +11% compared to 2019. “The group is getting back to the profitable growth trajectory that it used to have before the pandemic”, pointed out the CFO Jean-Marc Duplaix.

Kering gets back to its profitable growth trajectory

Gucci grew by 86% in the 2nd quarter of 2021, compared to the same period of 2020, beating the +77% forecasted by analysts. Simply put: it’s back in line with 2019’s performances. Considering the direct retail sales made, against the 1st semester of 2019, the results were: Gucci +6,3%, Yves Saint Laurent +17,3%, Bottega Veneta +19,2% and “other brands” +22,7%. “Balenciaga and Alexander McQueen have once again made exceptional strives”, writes Kering. Overall, the group closed the first quarter of 2021 with 8 billion euro in revenue: at constant rates, the result equals +54.1% on 2020 and +8.4% on 2019. “We are accelerating our investments for the brands and strategic initiatives, specifically to strengthen the exclusivity and control over the distribution operations”, commented CEO François-Henri Pinault (in photo).

Increasing magrins

Investments that won’t impact profitability. The group’s margins should continue to increase in the second half of the year, explains Jean-Marc Duplaix (according to Reuters), “demand for our brands is strong”. Kering’s CFO explained that the prices of some of Gucci and Bottega Veneta’s accessories have increased over the last year” and that’s “a sign that consumers are willing to pay more for these brands”.

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