Kering’s half-yearly revenue falls by 29.6%

The impact of the deadly pandemic is becoming more visible as companies are coming out with their quarterly and half-yearly financial reports.

Kering is the newest in the list of fashion retailers that’s had difficult 6 months!

The French fashion label has posted a disheartening Y-o-Y fall of 29.6 per cent in revenue to touch €5.3 billion. That’s even worse than one of its main competitors – LVMH.

LVMH had, notably, recorded a fall of 27 per cent in its half-yearly revenue.

What’s striking for Kering, which owns biggies like Gucci and Yves Saint Laurent, is that the turnover of €5.3 billion is nearly one-third lower than what the fashion brand had clocked in the first half of 2019. That’s something which will keep the retailer worried.

Though sales from directly operated stores slumped by 31 per cent, the second quarter of the year witnessed the fashion brand’s overall revenue fall by 43.4 per cent adjusted owing to closure.

Expectedly, Kering’s digital business saw a growth of 47.2 per cent – something to rejoice for the fashion label.

Talking about brands, Gucci saw its revenue fall by nearly €3.6 billion in the first half of 2020. Now that’s a fall of 33.5 per cent (€3.6 billion) compared to the first 6 months of 2019 – indeed shocking numbers for Kering’s most notable brand.

However, with stores reopening, Gucci seems to be slowly getting back to its feet with its digital sales recording a 51.8 per cent growth.

As far as Kering’s other brands are concerned, Yves Saint Laurent saw its revenue fall by 30 per cent in the first half, whereas Bottega Veneta posted a revenue decline by 8.4 per cent.

Notably, Kering’s other brands generated €919.1 million, with business turnover falling by 25 per cent.

Kering has continued to be innovative with its products despite all challenges, and one needs to see how quickly the brand adapts to the new normal and how better the second half of 2020 would be for the fashion brand.