Kering 1st-Half Profits Boosted by Gucci -- Update
27 Juillet 2017 - 11:19PM
Dow Jones News
By Matthew Dalton
PARIS--Luxury conglomerate Kering Co. said Thursday that profits
soared in the first half of the year, powered by surging sales at
its flagship brand, Italian fashion house Gucci.
Net income was 826 million euros ($962.4 million), up 78% from
the first half of 2016. That was mainly thanks to Gucci, where
recurring operating income rose 69% to EUR907 million.
The results continue a run of strong sales growth for Gucci and
its creative director, Alessandro Michele. Since he took the job in
January 2015, his designs coupled have drawn droves of new
customers to the brand.
French fashion label Saint Laurent, Kering's second-biggest
brand, also delivered strong results, with recurring operating
profits for the half rising 50% to EUR164 million.
Jean-Marc Duplaix, Kering's chief financial officer, said growth
rates later this year would likely fall to a lower "new normal."
That's because the luxury sector suffered from a slowdown in the
first half of last year in the aftermath of the European terror
attacks in Paris and Brussels, boosting the growth rates seen this
half.
Yet Mr. Duplaix said Gucci in particular has the potential to
boost sales further in product lines such as watches, designer
glasses and perfume.
Kering's sales in the second quarter were EUR3.7 billion, up 25%
from last year.
Write to Matthew Dalton at matthew.dalton@wsj.com
(END) Dow Jones Newswires
July 27, 2017 17:04 ET (21:04 GMT)
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