2024-07-26 16:42:08 ET
Kering SA (PPRUF)
Q2 2024 Earnings Conference Call
July 24, 2024, 09:15 AM ET
Company Participants
Armelle Poulou - CFO
Francesca Bellettini - Deputy CEO
Jean-Marc Duplaix - Deputy CEO
Conference Call Participants
Anne-Laure Bismuth - HSBC
Melania Grippo - BNP Paribas
Edouard Aubin - Morgan Stanley
Luca Solca - Bernstein
Charles-Louis Scotti - Kepler Cheuvreux
Louise Singlehurst - Goldman Sachs
Thomas Chauvet - Citi
Piral Dadhania - RBC
Niccolo Serra - Bank of America
Rogerio Fujimori - Stifel
Chiara Battistini - JPMorgan
James Grzinic - Jefferies International
Presentation
Armelle Poulou
Good evening to all of you, and welcome to Kering's 2024 First Half Results Call. Before I go over our operational and financial highlights. A few housekeeping comments. The call tonight will end at 07:00 P.M. sharp, so we can hand over to Moncler. After my presentation, I will be joined by Francesca Bellettini, and Jean-Marc Duplaix, our Deputy CEOs for the Q&A session. We kindly ask that you limit the number of your questions so anyone who wants can have an opportunity.
Starting on Slide 4. During the first half, we focused on the execution of our strategy, pursuing our investments in the long-term desirability, visibility and exclusivity of our houses. They reach new milestones along their creative journey with fashion shows that splendidly displayed modern interpretations of their code and identities. Our houses capitalize on both innovation and legacy.
At Balenciaga, for instance, this was evidenced by the success of its new Rodeo bag together with the revival of the iconic City Line. Boucheron celebrated the 20th anniversary of the Quatre ring and introduced a stunning new high-jewelry collection. The continuous enhancement of our distribution and client service was exemplified by Bottega Veneta's opening of its first residence in Venetian Palazzo, a beautiful location, hosting a new program of VIC experience, services and cultural encounters, tightening control over our supply chain, internalizing production capacity, craftsmanship and know-how is all part of our long-term strategy.
This is true in our soft luxury and eyewear businesses as it is in jewelry. Bottega Veneta recently advanced its Lesego capabilities through the acquisition of a strategic supplier and Pomellato did the same with a renowned stone setting laboratory in Italy. Kering Beauté is forging ahead for Bottega Veneta, anticipating the launch of a first ultra-high-end fragrance in the second half, it unveiled our first in-house products in the form of an exclusive candle collection.
We are also making progress with the integration of Creed, who's recently introduced feminine scents are well received. And we continue to make headways in our sustainability and talent roadmap, notably with the development of new collaborations and graduate programs alongside leading schools and institutions.
On Slide 6, our revenue in the first half exceeded €9 billion, down 11%, both reported and comparable. The 1 point positive scope impact from Creed offset the negative FX impact. The Q2 revenue trend is very much in line with H1, both in reported and comparable terms. Our first half revenue breakdown by region changed quite substantially from 2023. Asia Pacific accounted for 32% of the total, down 5 points.
Western Europe, North America and Japan, each gained 1 point, respectively, at 28%, 23% and 8% of revenue. And rest of the world at 9% of revenue was up 2 points. I will review the dynamics driving the geographic mix....
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Kering SA (PPRUF) Q2 2024 Earnings Call Transcript