On the up for Kering← Back
About 3 Years, 7 Months, 2 Weeks, 5 Days, 19 Hours, 24 Minutes ago.
Image source - Ulysse Nardin
French luxury goods conglomerate, Kering SA has published results for the first half, in addition to announcing that it is adding a watch label to its portfolio of luxury brands.
Kering, whose main rival is LVMH, owns a range of luxury and sports brands such as Gucci, Bottega Veneta, Alexander McQueen and Puma. The group recently announced that profits for the first half rose by 7%, despite a significant decline in Gucci sales. 37% of Kering’s revenue is accounted for by Gucci’s sales, which fell by 4.5% following the deployment of a new strategy which aims to make the brand more exclusive.
The effects of Gucci’s performance were counterbalanced by strong revenue growth at Saint Laurent Paris, whose second quarter sales rose by 29%. This growth comes following the appointment of Hedi Slimane as creative director in 2012, the designer who has been largely responsible for the brand’s increased commercial success. Kering thereby exceeded the predictions made for that period.
The luxury goods conglomerate has also announced it has acquired a 100% stake in Swiss watch brand Ulysse Nardin, known for creating complex, high-quality timepieces using ultra-modern technologies. Kering already has several jewellery and watch holdings including Boucheron and Pomellato. Commenting on this new acquisition, Kering’s CEO Francois-Henri Pinault said: “Ulysse Nardin benefits from a rich heritage, high profitability and solid growth prospects. This is an opportunity that we had to seize, particularly because this structural acquisition will enable us to take advantage of the numerous synergies with our existing brands.”