Four huge luxury brands have delivered four very different sets of results over the last two days, with Hermes and Moncler emerging as winners, LVMH reporting middling results and Kering clearly suffering.
Luxury fashion conglomerate Kering announced a dramatic fall in net profit of 50 per cent in the first six months of 2024, to €878m (£740m) — which is worse than the 40 to 45 per cent profit plunge it forecast.
Kering, which owns Gucci, Bottega, Balenciaga and Saint Laurent, has particularly suffered in the past few months as Balenciaga has been caught up in a PR firestorm after one of its ad campaigns created a scandal for the company. Balenciaga used to be the fastest-growing brand in the company’s stable.
First-half revenue was also down 20 per cent at Gucci.
Jean-Marc Duplaix, Kering’s deputy chief executive officer, called the macroeconomic environment “volatile” and said he “wouldn’t predict anything when it comes to the trends for the rest of the quarter.”
The tough environment is easing for other brands, though: Moncler and Hermes both posted very robust results.
Moncler Group reported revenue of €1,230.2 (£1,037m) in the first half of 2024, up by 11 percent at constant exchange and eight per cent at current exchange rates. In the second quarter, group revenue reached €412.2m, up three per cent.
Moncler pointed to “positive performance of the Chinese mainland, notwithstanding the tough comparable base and the increase in Chinese consumption abroad.”
Remo Ruffini, chairman and chief executive of Moncler, said he was “pleased” with the results positive “amid a generally complex operating environment for the luxury goods sector”.
Hermes also reported an impressive set of results. All geographical areas recorded double-digit growth, the company said, while revenue rose by 12 per cent at current exchange rates.
Meanwhile LVMH performed slightly under analysts’ expectations of three per cent growth, positing an uptick in revenue of one per cent. Net profit was also down 14 per cent at €3.3bn (£2.8bn).
Despite the dip, Bernard Arnault, chairman and chief executive of LVMH, was upbeat.
“The results for the first half of the year reflect LVMH’s remarkable resilience, backed by the strength of its Maisons and the responsiveness of its teams in a climate of economic and geopolitical uncertainty,” he said.