REPORT Kering posted revenue of 5,512.5 million euros (6,108.7 million dollars) in the first-half of 2015, representing a rise of 17 percent on a reported basis and 3.5 percent on a comparable group structure and exchange rate basis. Exchange rate fluctuations during the six months had a positive impact on revenue. Sales growth in mature markets was once again positive with an increase of 5.5 percent based on comparable data, driven by Western Europe and Japan, while sales in emerging markets were stable.
Revenue generated outside the eurozone accounted for 79 percent of total consolidated revenue in first-half 2015. Kering’s recurring operating income amounted to 773 million euros (856.6 million dollars), down 5.4 percent from first-half 2014 on a reported basis, and consolidated recurring operating margin amounted to 14 percent. Recurring operating margin was down in luxury activities due to exchange rate fluctuations. Recurring operating margin in sport & lifestyle amounted to 2.2 percent. The group's gross margin increased 13.2 percent as reported. Consolidated EBITDA came to 972 million euros (1,077 million dollars), in line with the first-half 2014 figure as reported, and the EBITDA margin narrowed by 3 points on a reported basis to 17.6 percent.
Commenting on the group’s performance, François-Henri Pinault, Kering's Chairman and Chief Executive Officer, said, “Kering delivered a sound performance in the first half of 2015, buoyed by strong sales growth in the second quarter in a volatile economic and currency environment. As we enter the second half of the year, I am fully confident in the Group's ability to combine strict management discipline with organic growth at each of our brands."
In first-half 2015, Gucci revenue was up 11.8 percent on a reported basis and down 1.6 percent based on comparable figures. Sales rose 4.6 percent in the second quarter on a comparable basis. At constant exchange rate, sales in directly operated stores increased by 3.1 percent over the first-half, fueled by strong revenue growth in the second quarter of 10.4 percent. Sales in directly operated stores over the first half were particularly brisk in Western Europe, up 13.3 percent on a comparable basis, and were lifted in the second quarter by high tourist numbers as well as by very positive trends with local clienteles. In Japan, which also enjoyed an increase in tourism, sales in directly operated stores rallied sharply in the second quarter, up 19 percent. Gucci reported recurring operating margin of 26.8 percent for the first six months.
Bottega Veneta posted revenue growth of 19.7 percent on a reported basis and of 6.4 percent based on comparable figures, with sales picking up pace in the second quarter - up 9.3 percent on a comparable basis. Directly operated stores contributing 83 percent of sales achieved robust sales growth over the half-year period showcasing increase of 7.2 percent on a comparable basis, led by a strong sales growth of 12.2 percent in the second quarter, particularly in Western Europe and Japan. Leather Goods, the brand's core business, reported solid year-on-year sales growth of 8.3 percent in the first half. Recurring operating income at Bottega Veneta jumped 10.4 percent.
Yves Saint Laurent Yves Saint Laurent again posted strong first-half revenue growth of 38.2 percent on a reported basis and 24.3 percent based on comparable figures, with sales picking up pace in the second quarter. Revenue generated by directly operated stores advanced by 25.7 percent led by a sharp increase in same-store sales. The brand delivered strong sales growth in all main product categories and across all regions. Recurring operating income surged 47.9 percent and the recurring operating margin was also up, at 13.7 percent. Other luxury brands sales were up 21.5 percent as reported and by 1 percent on a comparable basis. The couture and leather goods brands posted a sharp revenue increase of 9.1 percent on a comparable basis and by 15.3 percent in the second quarter.
Total sales of the Jewellery brands were up in the first-half, but revenue from Watches was down year on year, reflecting unfavourable market conditions. The wholesale network remains the main distribution channel for other luxury brands, accounting for 55.1percent of the total. Sales generated in the wholesale network in the first six months of 2015 were down 6.4 percent on a comparable basis, while comparable sales generated in directly operated stores rose 13.1percent. Revenue generated in mature markets rose 5.2 percent on a comparable basis, whereas business in emerging markets contracted.
Puma posted a sharp increase in first-half revenue, up 15.5 percent year on year as reported and 5.9 percent on a comparable basis, with brisk trading in the second quarter - up 7.5 percent based on comparable figures. Wholesale rose by 5.4 percent on a comparable basis, with all of the brand's main markets reporting growth. Revenue posted by Puma’s directly operated stores rose 9.3percent, with higher sales on a comparable basis. Sales of footwear increased 12.1percent based on comparable figures. Combined first-half 2015 revenue for Volcom and Electric moved up 15.3 percent as reported but dropped 1.4 percent based on constant exchange rates. Trends improved in the second quarter, with revenue up 2.6 percent based on comparable data.