The drop in the euro against the dollar contributed to boosting sales of the French luxury goods group Kering in the first half of this year, despite the decline in growth in “Gucci”, the group’s most prominent brand.
And the group announced, on Wednesday, that its total sales rose by 16 percent on a comparative basis and 23 percent on a reported basis, to 9.93 billion euros (10.04 billion dollars), the difference is mainly due to currency effects.
Net profit rose 34 percent compared to the same period last year, to 1.99 billion euros.
Growth slowed in the second quarter, although Kering said strong performances in Western Europe, Japan and North America offset the impact of the COVID-19 shutdown in China.
China has been one of the major growth markets for luxury brands in recent years, so prolonged shutdowns can have a significant impact on business performance.
Kering did not provide a geographic breakdown of its sales.
Gucci accounts for more than half of the French group’s total sales, but the Italian luxury house’s growth has fallen by 15 percent, according to reports.
Sales of “Yves Saint Laurent”, also owned by “Kering”, jumped by 42 percent, and “Bottega Veneta” by 18 percent.
Luxury groups benefited from strong demand after the easing of anti-coronavirus lockdown measures, as shoppers resume spending savings accumulated during the pandemic, ignoring concerns about volatile stock markets and rising prices, according to Archyde.com.
After years of astonishing growth, Gucci, which accounts for more than half of the Kering Group’s revenue and accounts for the bulk of its profits, has suffered more than some competitors in the past period, due to its heavy dependence on the Chinese market and international tourist flows, which have not yet returned to the country. normal.
The group’s chief financial officer, Jean-Marc Duplex, told reporters that it saw an improvement in China last June, with movement restrictions gradually lifted, and noted that new products and price increases were helping Gucci’s sales, especially in Europe and the United States.