Gucci Recorded An Increase Of 3.9% In The First Half Of The Year.

Under the operation of Marco Bizzarri & Alessandro Michele combination, Gucci

One season is better than one season.

By the end of June 2016, in the first half of fiscal year, Gucci Gucci recorded an increase of 3.9% in revenue from 1 billion 874 million 200 thousand euros in the same period last year to 19.475 billion euros, which is 5.4% higher than that recorded on the basis.

Business profits from continuing operations also increased by 7% in the first half of the year, up from 506 million 100 thousand euros in the same period last year to 536 million 900 thousand yuan.

It is worth mentioning that the Gucci Gucci's two quarter growth rate was significantly faster than the base, reaching 7.4%.

The expected 2%-3% also exceeded the 3.1% increase in the first quarter.

The company's Kering SA (KER.PA), chief financial officer of Kai Yun group, Jean-Marc Duplaix, said at the earnings conference that in the two quarter, the sales of Gucci's new products accounted for 70% of the brand new products, and the sales of new products will reach 90% by the end of the year, while the sales of new products will only account for 40% in the first quarter.

The sale of new products is not only beneficial to income growth, but also helps to improve brand profit margins.

In addition, Jean-Marc Duplaix said that although Gucci Gucci did not raise the selling price, the average selling price had been raised due to the upgrading of products, and in fact, the price was increased in disguise.

In the first half of this year, Gucci's Gucci's operating profit margin improved to 27.6% from 80 basis points, while the EBITDA profit margin also had a slight improvement of 10 basis points to 31.4%.

In the first half of the year, retail sales still accounted for 83% of Gucci's Gucci share.

Contrary to Gucci Gucci, Chanel, Chanel and other brands have started a price war since 2015, while Gucci Gucci has attracted consumers by replacing designer and product style and store concept.

The strong recovery of Gucci Gucci also stimulated the Kering SA of the brand parent company, the revenue of the luxury goods department of the open cloud group, which registered an annual increase of 3.1% to 3 billion 877 million 900 thousand euros, compared with 37.620 euro billion euros in the same period last year, a 4% increase over the base.

In the first half of the year, its operating profit increased by 4.2%, from 806 million euros in the same period last year to 839 million 600 thousand euros.

For Gucci Gucci changes, industry analysts have commended, and Exane BNP Paribas analyst Luca Solca said the brand's shift is working; MainFirst Bank AG analyst John Guy indicates that new products, increased sales of full price products, and expanded customers have enabled Gucci Gucci to get rid of the industry's downturn; the most important thing is to see that Gucci's profits have been restored, and this profit growth is not a positive effect at the expense of profit margins.

Gucci Gucci and Kering SA Open Cloud group's performance in the luxury sector is obviously better than the rival Louis Vuitton Louis Weedon and its parent company LVMH Mo t t Louis Louis Vuitton Vuitton (MOET & CHANDON) Hennessy, LV, MOET & CHANDON, Hennessy LV group, the fashion and leather goods department in the first half of the year, revenue declined by 0.8% and operating profit decreased by 1.9%. Although the company did not disclose the performance of the brand, the group chief financial officer admitted that the brand's operating profit in the first half of the year was almost flat, that is, it actually declined.

LVMH SE's most vulnerable European market is the Gucci Gucci's best performing market. On Tuesday, LVMH SE said that the biggest brand of the group LV LV has declined in European and Japanese markets, and the European market has been declining due to terrorist attacks and devaluation of the renminbi.

However, in contrast, Gucci Gucci has not been affected by the above factors. In the first half of the year, the retail revenue of Gucci, Gucci and Western Europe could rise by 19.8% over the base.

Gucci Marco CEO Marco Bizzarri, in an interview in early June, pointed out that Alessandro Michele's design is winning a large number of young customers and the old customers of 80 and 90s Gucci: "we can see that the local consumers who have never patronized (Gucci) in the past 20 years have returned to the Gucci store, although the (Alessandro Michele dominated new product) has only 15 months, but word of mouth is very good."

In contrast, Gucci Gucci's popularity in the most mature market in Europe is obviously far better than that of its competitor LV.

Kering SA, Kai Yun group, said the new design of Gucci Gucci is very successful in Europe and has a wider and younger audience, which in turn will attract more tourists.

As we all know, although Japan and China are the second and third largest luxury goods markets, the luxury consumption concept of Chinese and Japanese is still dominated by European consumers.

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In the Japanese market, where LV sales also declined, the sales of direct sales channels in the first half of Gucci were 2.8% comparable to that in the first half of Gucci. This growth is not ideal, but the yen's surge of 30% this year has greatly reduced the consumption of tourists and tourists.

However, the North American market seems to be more attractive to LV than Gucci Gucci, while Gucci Gucci has lost 2.2% of its sales in the first half of the year compared with sales, while the decline has improved over the first quarter, but LV has been doing well in the market.

As for emerging markets, the share of Gucci Gucci in the first half of this year fell to 44.2% from 46.8% last year, and the growth of emerging markets in the first half of the year was 2.1% under the fixed exchange rate.

Apart from Japan, the Asia Pacific market increased by 0.7% in the first half of this year, mainly due to the weakness of Hong Kong and Macao markets and the growth of the mainland market.

In the first half of the year, the market share of Gucci Gucci in Western Europe, North America, Japan and Asia Pacific was 27%, 20%, 11% and 35% respectively.

The share of leather goods, shoes and garments is 56.2%, 15.9% and 12.6% respectively.

Apart from Gucci's recovery, Kering SA, the second largest brand in the luxury sector of Bottega group, continued to lose its appeal, especially in the mainland and Hongkong market. The brand declined by 9.8% in the two quarter, compared with 8.3% in the first quarter, and the real income dropped by 10.6% to 303 million 300 thousand euros in the two quarter.

In the first half of the year, the brand's total revenue was 571 million 200 thousand euros, down 9.2% from 6.292 yuan in the same period last year, down 9.1% from the base. The first half of this year's business profits from continuing operations fell 19.4%, from 180 million 100 thousand euros in the same period last year to 145 million 100 thousand yuan.

For the decline of Bottega Veneta Bao family, Kering SA, Kai Yun group, said that the price positioning of the brand and the risks faced by the customers in the Asian market mainly meant that the economic and exchange rate fluctuations were also affected.

The group said the brand needed to adjust its structure and strategy.

According to Jean-Marc Duplaix, the Bottega Veneta product is also not in line with the current trend, because small handbags and shoulder bags are more popular nowadays, while Bottega Veneta has been famous for its large handbags.

Since 2013, Bottega Veneta has released the Chinese name "Bao butterfly home" (homophonic "falling price" and "package depreciation"). The brand has gone from bad to worse after entering the "1 billion euro club".

Although Fran CEO ois-Henri Pinault, the parent company chief executive, said that it would set an intermediate target of 2 billion euros for Bottega Veneta, if the performance continued to be sluggish, it would not be impossible to withdraw from the "1 billion euro club" if the target was out of reach.

In the first half of the year, sales of Bottega Veneta West Europe direct channel plummeted by 21.8%, only half of France's single country fell; the North American market also plunged 20.1%; the Japanese market had a double-digit decline of 13.2% due to the decrease in Chinese tourists' consumption.

The sale of the mainland and South Korean markets has increased in response to the depreciation of the renminbi, which accounts for 45.3% of the growth of the emerging markets in the first half of the year, while the market in Hong Kong and Macao is still weak.

By the end of the first half of this year, Bottega Veneta has operated 247 direct outlets worldwide, of which more than 40% of 108 are in emerging markets, and the Asia Pacific market share is 42%, higher than that of Western Europe and North America, and the Japanese market accounts for 16%.

The data of Yves Saint Laurent are still the best in the group's luxury sector. The first half of the business profit has soared more than 80% to 80.2% euros to 109 million euros. The strong growth can't be shaken, but the brand creative director Hedi Slimane will no longer renew the brand, replaced by Anthony Vaccarello, and the market has certain concerns about the future of the brand.

Kering SA group's overall revenue in the first half of the year increased 3.3% to 5 billion 692 million 900 thousand euros, compared with 55.125 euro billion euros in the same period last year, an increase of 5.5% over the same period. The group's operating profit during the period was 811 million 100 thousand euros, up 4.9% from the 773 million 200 thousand euro a year earlier, far exceeding the market expected 796 million euros.