- In the second quarter, Kering‘s overall revenue decreased by 18% year-over-year to €3.70 billion, slightly below the forecasted €3.77 billion.
- Gucci’s revenue decreased by 27% year-over-year to €1.46 billion, aligning with the estimated figure.
- Yves Saint Laurent’s revenue was €609 million, down 13% year-over-year, missing the estimate of €615.2 million.
- Bottega Veneta experienced a slight decline in revenue, falling 1.6% year-over-year to €441 million, compared to an estimated €449.3 million.
- Other Houses reported a revenue decrease of 19% year-over-year, recording €726 million, lower than the expected €774.2 million.
- Eyewear & corporate revenue showed a modest increase of 0.6% year-over-year, totaling €534 million, shy of the forecasted €543.3 million.
- For the first half, Kering‘s comparable revenue fell by 15%, with total revenue reaching €7.59 billion, compared to an estimate of €7.65 billion.
- The company’s recurring operating income dropped by 39% year-over-year to €969 million, surpassing the estimate of €934.9 million.
- Gucci’s recurring operating income fell by 52% to €486 million, under the expected €500.7 million.
- Yves Saint Laurent saw a 17% decrease in recurring operating income, recording €262 million, above the estimate of €233.1 million.
- Bottega Veneta’s recurring operating income rose by 5% to €127 million, exceeding the forecast of €123.3 million.
- Other Houses reported a recurring operating loss of €29 million, compared to a profit of €44 million last year, yet better than the estimated loss of €43.8 million.
- Kering achieved a recurring operating margin of 12.8%, down from 17.5% the previous year but above the estimated 12.1%.
- The recurring net income dropped by 49% year-over-year to €450 million, surpassing the estimate of €424.3 million.
- In the first half, free cash flow from operations was strong at €2.4 billion, bolstered by €1.3 billion from completed real estate transactions.
Kering on Smartkarma
Analysts at Baptista Research have published a bullish report on Kering SA on Smartkarma, highlighting the integration of a new creative vision that is fueling their optimism. Despite Kering S.A.’s 2024 financial performance not meeting initial expectations due to ongoing transformation efforts and market challenges, the company is steadfast in its long-term strategy focusing on brand health and sustainable growth. Baptista Research delves into the evolving brand portfolio of Kering, which includes renowned names like Gucci, Kering Eyewear, and Kering Beauté, with a keen eye on individual brand strategies aimed at enhancing product offerings. The report also outlines a thorough analysis utilizing a Discounted Cash Flow methodology to evaluate key factors potentially impacting the company’s stock price in the near future.
A look at Kering Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Kering, the luxury and sport & lifestyle goods company looks to have a balanced long-term outlook across key investment factors. With moderate scores in Value, Dividend, Resilience, and Momentum, Kering demonstrates stability in its financial performance and market position. However, a slightly lower score in Growth suggests potential challenges in expanding its business and market share in the future.
Kering SA, known for its renowned brands such as Gucci, Bottega Veneta, and Puma, operates on a global scale, offering a diverse portfolio of luxury products. Being headquartered in Paris, France, the company’s strategic positioning in the fashion and lifestyle industry provides a strong foundation for continued growth and market presence despite facing some growth hurdles as indicated by the Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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