Kering Half-Year Report 2024

Highlights

• The Group’s revenue amounted to €9,018 million in the first six months of 2024. Compared to the same period of 2023, revenue fell 11% as reported and 11% on a comparable scope and exchange rate basis, against the backdrop of a slowing market in most regions except Japan.
• Currency movements had a negative impact on first-half performance, dragging down reported sales growth by just over 1 point or by €195 million in absolute terms. The Euro rose against other currencies to varying extents, and the negative exchange rate effect arose mainly from sales denominated in Chinese yuan (€73 million) and the Japanese yen (€78 million).
• The Group’s recurring operating income amounted to €1,582 million in the first half of 2024, €1,157 million or 42% lower than in the same period of 2023.
• Operating margin fell 9.5 points to 17.5% because of negative operational leverage resulting from lower revenue.
• Gross margin was €6,708 million, down 13% compared to the first half of 2023. As a proportion of revenue, gross margin was 74.4%, down 1.9 points relative to the first half of 2023, due to the combined negative effects of the country and product mix and despite higher average selling prices and the positive effect of foreign exchange rate hedges.
• The Group’s cost of net debt was €151 million in the first half of 2024 (€40 million in the first half of 2023). The increase is mainly due to the rise in the average amount of debt, mainly long-term debt, in the context of interest rates, partly offset by the higher return on the Group’s cash position.