PARIS — Kering continued its streak of market-beating performances in the second quarter, reporting that revenues jumped 26.4 percent during the period on the back of another quarter of stellar growth at Gucci.
The parent of brands including Saint Laurent, Balenciaga and Boucheron said Thursday that sales totaled 3.32 billion euros in the three months to June 30.
Net profit surged 186 percent to 2.36 billion euros in the first half, while recurring operating income rose 53 percent to 1.77 billion euros. The group’s operating margin stood at 27.5 percent during the period, up 470 basis points versus the same period a year ago.
Organic sales at Gucci increased 40 percent to 1.99 billion euros in the second quarter, representing the sixth consecutive quarter of growth exceeding 35 percent.
Stripping out the impact of foreign exchange fluctuations, group revenues were up 31.5 percent in the second quarter, adding to evidence that the luxury sector is powering ahead despite currency turmoil and growing trade tensions between the U.S. and key partners including China.
“Kering achieved dazzling top-line and earnings performances in the quarter and six months. Our growth, grounded in the exclusivity and desirability of our brands, is remarkably healthy,” said François-Henri Pinault, chairman and chief executive officer.
“While facing increasingly demanding comps and an uncertain global environment, we will once again substantially enhance our financial and operating performances in 2018,” he added.
Kering has been streamlining its portfolio as it repositions itself as a pure luxury player.
The French conglomerate has engaged in a flurry of house-cleaning moves since the beginning of the year, notably spinning out of the group its stake in Puma, selling its holding in Stella McCartney and Christopher Kane back to the designers, shuttering the Tomas Maier brand and selling action sports brand Volcom.
The Kering results come on the heels of an 11 percent rise in revenues at LVMH Moët Hennessy Louis Vuitton in the second quarter. Hermès International, meanwhile, reported total revenue rose 7.2 percent during the period.