PRESS RELEASE
July 24, 2024

FIRST-HALF 2024 RESULTSGroup revenue: €9,018 million
down 11% as reported and on a comparable basis
Recurring operating income: €1,582 million
Net income attributable to the Group: €878 million“In a challenging market environment, which adds pressure on our top line and profitability, we areworking assiduously to create the conditions for a return to growth. Our Houses pursue theirinvestments to enrich their offer, intensify the impact of their communications, and reinforce theexclusivity of their distribution. We make certain that every one of these investments creates value forthe long term. While the current context might impact the pace of our execution, our determination andconfidence are stronger than ever.”François-Henri Pinault, Chairman and Chief Executive Officer-

Group revenue amounted to €9.0 billion in the first half of 2024, down 11% both as reported andon a comparable basis.

-

In the second quarter of 2024, revenue totaled €4.5 billion, also down 11% as reported and on acomparable basis. The decline in revenue as reported includes a negative currency effect of 1%
and a positive scope effect of 1% from the consolidation of Creed.
o Sales from the directly operated retail network fell by 12% on a comparable basis in
the second quarter, adversely affected by lower store traffic. Trends in the various
regions in the second quarter remained broadly in line with the first quarter, apart froma sequential improvement in Japan and a deceleration in Asia-Pacific.
o Wholesale and Other revenue fell 6% on a comparable basis, as the Group continued
to enhance the exclusivity of its Houses’ distribution. Kering Eyewear pursued its
positive trend.

-

As the Group maintains its ongoing investment in its Houses, recurring operating income fell
42% to €1.6 billion in the first half, in line with the guidance provided when the Group reported its
first-quarter 2024 revenue. Recurring operating margin was 17.5%, significantly lower than in
the first half of 2023, resulting from negative operational leverage. The Group prioritizes
expenditures aimed at nurturing the desirability of its Houses and maintains strict control over all
operating expenses.

Press release – July 24, 2024

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Net income attributable to the Group was €878 million in the first half of 2024.

-

Free cash flow from operations remained high at €1.9 billion in the first half excluding realestate acquisitions, thanks to good inventory management in particular. Including the acquisitionof a prestigious property on Fifth Avenue in New York City, free cash flow from operations totaled€1.1 billion.

Operating performance

Revenue

H1 2024

H1 2023(in € millions)

ReportedchangeComparable
change
(1)

Gucci

4,085

5,128

-20%

-18%

Yves Saint Laurent

1,441

1,576

-9%

-7%

Bottega Veneta

836

833

+0%

+3%

Other Houses

1,717

1,856

-7%

-6%

Kering Eyewear and Corporate

1,067

869

+23%

+7%

Eliminations

(128)

(127)

N/A

N/A

KERING

9,018

10,135-11%-11%(1) On a comparable scope and exchange rate basis.

Recurring operating income

H1 2024

H1 2023

Change

1,007

1,810

-44%

Yves Saint Laurent

316

481

-34%

Bottega Veneta

121

169

-28%

Other Houses

44

224

-80%

Kering Eyewear and Corporate

101

63

+61%

Eliminations

(7)

(8)

N/A

1,582

2,739

-42%

(in € millions)

Gucci

KERING

Press release – July 24, 2024

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GucciIn the first half of 2024, Gucci’s revenue was €4.1 billion, down 20% as reported and down 18% on acomparable basis. Sales from the directly operated retail network dropped 20% on a comparable basis,
while wholesale revenue was down 9%.
In the second quarter of 2024, the House's sales were down 19% on a comparable basis, with a 20%
decline in the directly operated retail network. Performances in each region were broadly in line withthose of the prior quarter, including a continuing marked decrease in Asia-Pacific. Gucci's new offering,rolled out in stores in line with plans, is well received, while sales of carryovers remained lower.
Gucci's recurring operating income totaled €1.0 billion in the first half of 2024. Recurring operating
margin was 24.7%, reflecting investments to pursue the House's long-term strategic initiatives.

Yves Saint Laurent
Yves Saint Laurent's revenue in the first half of 2024 was €1.4 billion, down 9% as reported and down
7% on a comparable basis. On a comparable basis, the House's sales from its directly operated retail
network were down 6% while wholesale revenue fell 25%.
In the second quarter of 2024, Yves Saint Laurent's sales were down 9% on a comparable basis, with
an 8% decline in the directly operated retail network. Performance deteriorated in Asia-Pacific, while
trends in Japan showed a sequential improvement. The House pursued initiatives targeting local
customers, and its new collections were very well received. Wholesale revenue was down 25% in thesecond quarter.
Yves Saint Laurent's recurring operating income was €316 million in the first half and its recurring
operating margin was 22.0%, as the House continues to invest in its communications and clientele
initiatives.

Bottega Veneta
Bottega Veneta had a record first half, with revenue of €836 million, unchanged as reported and up
3% on a comparable basis. Sales from the directly operated retail network rose by 8% on a comparable
basis, while wholesale revenue was down 19% on a comparable basis.
In the second quarter, the House's revenue was up 4% on a comparable basis. Sales in the directly
operated retail network rose 7% on a comparable basis, supported by double-digit growth in Western
Europe and North America and strong momentum in the Middle East. Sales in Asia-Pacific were resilient.
Wholesale revenue was down 13%.
Bottega Veneta’s recurring operating income for the first half of 2024 totaled €121 million, and its
recurring operating margin was 14.5%, reflecting significant communications expenditure as well as
highly exclusive clienteling events.

Press release – July 24, 2024

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Other Houses
The Other Houses' revenue in the first half of 2024 was €1.7 billion, down 7% as reported and down
6% on a comparable basis. Sales from the directly operated retail network rose 1% on a comparable
basis, while wholesale was down 21%.
Second quarter 2024 sales were down 5% on a comparable basis, with contrasted performance acrossHouses. Sales in the directly operated retail network were stable year-on-year on a comparable basis.
Jewelry Houses Boucheron and Pomellato both achieved double-digit growth. Balenciaga's sales fromits directly operated retail network were unchanged on a comparable basis. Alexander McQueen
continued its creative transition. Brioni posted strong revenue growth from its directly operated retail
network on a comparable basis. Wholesale revenue of Other Houses was down 16%.
The Other Houses' recurring operating income in the first half of 2024 amounted to €44 million,
resulting in a recurring operating margin of 2.6%. That performance is attributable to significant
reinvestment in communications at Balenciaga and the impact of the transition at Alexander McQueen,
while Boucheron delivered sharply higher operating income.

Kering Eyewear and Corporate
In the first half of 2024, total revenue from the Kering Eyewear and Corporate segment was €1.1
billion, mainly from the activities of Kering Eyewear and Kering Beauté, the latter comprising the salesof Creed.
Kering Eyewear's revenue in the first half of 2024 totaled €914 million, up 5% as reported and up 6%
on a comparable basis.
In the second quarter, Kering Eyewear's sales rose by 3% both on a comparable basis and as reported,
driven by solid progression of the brands in its portfolio.
In the first half, Kering Eyewear's recurring operating income was €196 million. Recurring
operating income for the segment was €101 million, after taking into account Kering Beauté'srecurring operating income along with Corporate costs (€95 million).

Press release – July 24, 2024

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Financial performance
In the first half of 2024, net financial expense amounted to €288 million.
The effective tax rate on recurring income was 26.9%.
Net income attributable to the Group was €878 million.

Cash flow and financial position
The Group's free cash flow from operations was €1.1 billion in the first half of 2024. Excluding theacquisition of a prestigious property on Fifth Avenue in New York City, free cash flow from operations
totaled €1.9 billion.
At June 30, 2024, Kering's net debt amounted to €9.9 billion.

Outlook
To achieve its long-term vision, Kering invests in the development of its Houses, so that they
continuously strengthen their desirability and the exclusivity of their distribution, strike a perfect balance
between creative innovation and timelessness, and achieve the highest standards in terms of quality,
sustainability, and experience for their customers. In an environment of ongoing economic andgeopolitical uncertainty, Kering will continue to execute on its strategy and vision, in pursuit of two key
ambitions: to maintain a trajectory of long-term profitable growth, and to confirm its status as one of themost influential groups in the Luxury industry.
Considering the uncertainties weighing on the evolution of demand from luxury consumers in the
coming months following the slowdown recorded in the first half of 2024, Kering’s recurring operating
income in the second half of 2024 could be down by approximately 30% compared to the second halfof 2023 (*).
The group prioritizes expenses and initiatives supporting the long-term development and growth of its
houses, while pursuing with determination the actions required in the current situation to optimize its
cost structure.
(*) Based on the scope of consolidation and exchange rates at the time of first-half 2024 reporting.
***At its July 24, 2024, meeting, Kering's Board of Directors, chaired by François-Henri Pinault, approved
the consolidated financial statements for the six months ended June 30, 2024, which were subject to alimited review.

Press release – July 24, 2024

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WEBCAST

Kering will present its first-half 2024 results in an audiocast, which will be accessible here at 5.45pm(CET) on Wednesday, July 24, 2024.
The presentation will be followed by a Q&A session for analysts and investors.
The slides (in PDF format) will be available ahead of the audiocast at www.kering.com.
A replay of the webcast will also be available at www.kering.com.

About Kering
Kering is a global Luxury group that manages the development of a collection of renowned Houses in Fashion,
Leather Goods and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni,
Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté. By placing
creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative
expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs
in our signature: Empowering Imagination. In 2023, Kering had 49,000 employees and revenue of €19.6
billion.

Contacts
Press
Emilie GargatteMarie de Montreynaud+33 (0)1 45 64 61 20+33 (0)1 45 64 62 53

emilie.gargatte@kering.com
marie.demontreynaud@kering.com+33 (0)1 45 64 61 49+33 (0)1 45 64 62 30

claire.roblet@kering.com
julien.brosillon@kering.com

Analysts/investors
Claire Roblet
Julien Brosillon

Press release – July 24, 2024

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APPENDICESEXCERPT FROM THE CONSOLIDATED FINANCIAL STATEMENTS AND ADDITIONAL
INFORMATION RELATING TO THE FIRST-HALF 2024 RESULTS
SITUATION AS OF JUNE 30, 2024

Contents

page

Announcements since January 1, 2024

8

Consolidated income statement

9

Consolidated statement of comprehensive income

10

Consolidated balance sheet

11

Consolidated statement of cash flows

12

Breakdown of revenue

13

Main definitions

14

Press release – July 24, 2024

7/14

HIGHLIGHTS AND ANNOUNCEMENTS SINCE JANUARY 1, 2024
Acquisition of strategic real-estate assets in New York and Milan
January 22, 2024 – Kering announced the acquisition of a prestigious New York City property comprising
luxury retail spaces across multiple floors and totaling approximately 115,000 sq. ft, or 10,700 sq. m. The
building is located at 715-717 Fifth Avenue and the price paid was $963 million (the equivalent of €885 million
on the date of the announcement).
April 4, 2024 – Kering announced the acquisition of the company that owns the iconic building located at 8
Via Monte Napoleone in Milan, for a consideration of approximately €1.3 billion. This 18th-century building islocated on the most prestigious corner of Milan’s Quadrilatero della Moda fashion district. It has five floors
and gross floorspace of approximately 127,000 sq. ft, or 11,800 sq. m.
These two investments form part of Kering’s selective real-estate strategy aimed at securing key locations
that are highly desirable for its Houses.
“Triple A” CDP score for Kering's climate commitments
February 6, 2024 – Kering is one of only 10 companies worldwide to achieve a score of AAA following theCarbon Disclosure Project’s annual assessment, which covers more than 21,000 companies. Kering is the
only company in its sector to earn this distinction, confirming its leadership in terms of transparency andperformance as regards protecting the climate, forests and water.
Dual-tranche bond issue for a total amount of €1.75 billion
March 5, 2024 – Kering carried out a dual-tranche bond issue for a total of €1.75 billion, consisting of:- a €1 billion tranche with an 8-year maturity and a 3.375% coupon; and- a €750 million tranche with a 12-year maturity and a 3.625% coupon.
The issue forms part of the Group’s active liquidity management and increases Kering's financial flexibility.
Creation of a tool to measure ecological impact in Asia-Pacific in partnership with the National
University of Singapore
May 13, 2024 – Kering and the National University of Singapore (NUS) officially announced that they were
forming a partnership as part of a research project. The aim of the project is to develop a reference framework
for measuring the impact of sustainability strategies adopted by large corporations in Asia-Pacific. Over athree-year period, the project will look at those corporations' ecological transition strategies andenvironmental reports and prepares a baseline study. That study is intended for business leaders, investors,
institutional investors and NGOs, and will be a useful resource for measuring progress made by industries in
the region.

APPOINTMENTS SINCE JANUARY 1, 2024
Appointments to Kering’s Executive Committee
April 2, 2024 – Kering announced the appointment of Mélanie Flouquet, Chief Strategy Officer, and Armelle
Poulou, Chief Financial Officer, to the Group’s Executive Committee.
June 6, 2024 – Kering announced the appointment of Laurent Claquin as its Chief Brand Officer and amember of the Executive Committee, effective July 1, 2024.
Appointments to Kering’s Board of Directors
April 25, 2024 – The Annual General Meeting has approved the appointment of three new independent
directors on the recommendation of the Board of Directors and its Appointments and Governance Committee:
Rachel Duan, Giovanna Melandri and Dominique D’Hinnin.
Appointment of Ewa Abrams as President of Kering Americas
July 15, 2024 – Ewa Abrams, currently General Counsel of Kering Americas, has been appointed as
President of Kering Americas effective August 1, 2024. She will report directly to Jean-Marc Duplaix, Deputy
CEO in charge of Operations and Finance.
Press release – July 24, 2024

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CONSOLIDATED INCOME STATEMENT(in € millions)First half 2024

First half 2023

Revenue

9,018

10,135

Cost of sales(2,310)(2,405)Gross margin

6,708

7,730

Other personnel expenses(1,547)(1,505)

Other recurring operating income and expenses(3,579)(3,486)

Recurring operating income

1,582

2,739

(13)

-

Operating income

1,569

2,739

Financial result

(288)

(204)

Income before tax

1,281

2,535

Income tax expense

(345)

(692)

CONTINUING OPERATIONSOther non-recurring operating income and expenses

Share in earnings (losses) of equity-accounted companies

4

3

940

1,846

o/w attributable to the Group

878

1,785

o/w attributable to minority interests

62

61

Net income from continuing operations

DISCONTINUED OPERATIONSNet income (loss) from discontinued operations--

o/w attributable to the Group--o/w attributable to minority interests--

GROUP TOTAL
Net income of consolidated companies

940

1,846

o/w attributable to the Group

878

1,785

o/w attributable to minority interests

62

61(in € millions)First half 2024

First half 2023

Net income attributable to the Group

878

1,785

Basic earnings per share (in €)

7.16

14.60

Diluted earnings per share (in €)

7.16

14.59

Net income from continuing operations attributable to the Group

878

1,785

Basic earnings per share (in €)

7.16

14.60

Diluted earnings per share (in €)

7.16

14.59

Net income from continuing operations (excluding non‑recurring items)
attributable to the Group

888

1,789

Basic earnings per share (in €)

7.24

14.63

Diluted earnings per share (in €)

7.24

14.62

Press release – July 24, 2024

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(in € millions)First half 2024

First half 2023

Net income

940

1,846

o/w attributable to the Group

878

1,785

o/w attributable to minority interests

62

61

11

(95)

change in currency translation adjustments

11

(95)

amounts transferred to the income statement--

Change in foreign currency cash flow hedges

(63)

119

Change in currency translation adjustments relating to consolidated
Subsidiaries

change in fair value

(16)

204

amounts transferred to the income statement

(52)

(79)

5

(6)

-

-

change in fair value--

amounts transferred to the income statement--

Gains and losses recognized in equity, to be transferred to the income statement

(52)

24

Change in provisions for pensions and other post-employment benefits

(6)

(2)

(8)

(2)

tax effects
Change in other comprehensive income (loss) of equity‑accounted
Companieschange in actuarial gains and losses
tax effects
Change in financial assets measured at fair value

2

-

15

16

change in fair value

13

22

tax effects

2

(6)

9

14

(43)

38

Gains and losses recognized in equity, not to be transferred to the income
Statement
Total gains and losses recognized in equity
o/w attributable to the Group

(44)

40

1

(2)

COMPREHENSIVE INCOME

897

1,884

o/w attributable to the Group

834

1,825

o/w attributable to minority interests

63

59

o/w attributable to minority interests

Press release – July 24, 2024

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CONSOLIDATED BALANCE SHEET
Assets(in € millions)

June 30, 2024

Dec. 31, 2023

Goodwill

7,090

7,112

Brands and other intangible assets

8,185

8,178

Lease right-of-use assets

5,098

4,984

Property plant and equipment

6,314

5,341

Investments in equity-accounted companies

1,775

1,750

Non-current financial assets
Deferred tax assets
Other non-current assets

483

536

1,507

1,520

35

16

30,48729,437

Inventories

4,346

4,550

Trade receivables and accrued income

1,155

1,151

Current tax receivables

762

765

Current financial assets

64

136

Other current assets

1,404

1,406

Cash and cash equivalents

3,934

3,922

11,665

11,930Non current assets

Current assets
Assets held for sale--

TOTAL ASSETS

42,152

41,367

June 30, 2024

Dec. 31, 2023

14,901

15,212Equity and liabilities(in € millions)

Equity attributable to the Group
Equity attributable to the minority interests

849

798

Equity15,75016,010Non-current borrowings

11,01810,026

Non-current lease liabilities

4,593

4,511

Non-current financial liabilities

7

13

Non-current provisions for pensions and other post-employment benefits

78

68

Non-current provisions

27

21

Deferred tax liabilities

1,793

1,776

Other non-current liabilities

433

311

17,94916,726

Current borrowings

2,838

2,400

Current lease liabilities

914

884

Current financial liabilities

58

588

2,132

2,200

Non current liabilities

Trade payables and accrued expenses
Current provisions for pensions and other post-employment benefits

13

12

Current provisions

135

163

Current tax liabilities

743

536

Other current liabilities

1,620

1,848

Current liabilities

8,453

8,631

-

-

42,152

41,367

Liabilities associated with assets held for sale

TOTAL EQUITY AND LIABILITIES

Press release – July 24, 2024

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CONSOLIDATED STATEMENT OF CASH FLOWS(in € millions)First half 2024

First half 2023

Net income from continuing operations

940

1,846

Net recurring charges to depreciation, amortizationand provision on non-current operating assets

1,013

878

Other non-cash (income) expenses

10

(139)

1,963

2,585

Interest paid (received)

229

173

Dividends received

(2)

(7)

Current tax expense

312

684

2,502

3,435

44

(419)

Cash flow received from operating activities

Cash flow received from operating activities before tax
dividends and interests
Change in working capital requirement
Income tax paid

(100)

(419)

Net cash received from operating activities

2,446

2,597

Acquisitions of property, plant and equipment and intangible assets(1,391)(1,891)

Disposals of property, plant and equipment and intangible assets-

117

Acquisitions of subsidiaries and associates, net of cash acquired

(23)

(55)

Disposals of subsidiaries and associates, net of cash transferred--

Acquisitions of other financial assets

(35)

(24)

Disposals of other financial assets

9796Interest and dividends received
Net cash received from (used in) investing activities
Increase (decrease) in share capital and other transactions30

14(1,322)(1,743)--(1,716)(1,712)

Dividends paid to minority interests in consolidated subsidiaries

(6)

(12)

Transactions with minority interests

(3)

(26)

Dividends paid to shareholders of Kering SA(Acquisitions) disposals of Kering treasury shares

3(7)Issuance of bonds and bank debt

1,750

1,508

Redemption of bonds and bank debt

(512)

(658)

153

(408)

(530)

(419)

Issuance (redemption) of other borrowings
Repayment of lease liabilities
Interest paid and equivalent
Net cash received from (used in) from financing activities
Net cash received from (used in) discontinued operations

(254)

(178)

(1,116)(1,912)--

Impact of exchange rate variations on cash and cash equivalents

37

14

Net increase (decrease) in cash and cash equivalents

46(1,044)

Cash and cash equivalents at opening

3,650

4,094

Cash and cash equivalents at closing

3,696

3,050

Press release – July 24, 2024

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REVENUE FOR THE FIRST AND SECOND QUARTERS(in € millions)H1 2024

H1 2023

Reported Comparable
changechangeQ2 2024

Q2 2023

Reported Comparable
changechange(1)

Q1 2024

Q1 2023

Reported Comparable
changechange

(1)

(1)

Gucci

4,085

5,128

-20%

-18%

2,006

2,512

-20%

-19%

2,079

2,616

-21%

-18%

Yves Saint Laurent

1,441

1,576

-9%

-7%

701

770

-9%

-9%

740

806

-8%

-6%

Bottega Veneta

836

833

+0%

+3%

448

438

+2%

+4%

388

395

-2%

+2%

Other Houses

1,717

1,856

-7%

-6%

893

966

-8%

-5%

824

890

-7%

-6%

Kering Eyewear andCorporate

1,067

869

+23%

+7%

531

436

+22%

+5%

536

433

+24%

+9%

Eliminations

(128)

(127)

-

-

(65)

(64)

-

-

(63)

(63)

-

-

KERING

9,018

10,135

-11%

-11%

4,514

5,058

-11%

-11%

4,504

5,077

-11%

-10%

(1)

Change on a comparable scope and exchange rate basis.

Press release – July 24, 2024

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MAIN DEFINITIONS“Reported” and “comparable” growth
The Group’s “reported” growth corresponds to the change in reported revenue (previously referred to as “actual” growth)
between two periods.
The Group measures “comparable” growth (also referred to as “organic” growth) in its business by comparing revenue
between two periods at constant scope and exchange rates.
Changes in scope are dealt with as follows for the periods concerned:−
the portion of revenue relating to acquired entities is excluded from the current period;−
the portion relating to entities divested or in the process of being divested is excluded from the previous period.
Currency effects are calculated by applying the average exchange rates for the current period to amounts in the previous
period.

Recurring operating income
The Group’s operating income includes all revenues and expenses directly related to its activities, whether these revenues
and expenses are recurring or arise from non-recurring decisions or transactions.
Other non-recurring operating income and expenses consist of items that, by their nature, amount or frequency, could
distort the assessment of the Group’s operating performance as reflected in its recurring operating income. They include
changes in scope, the impairment of goodwill and brands and, where material, of property, plant and equipment andintangible assets, capital gains and losses on disposals of non-current assets, restructuring costs and disputes.
“Recurring operating income” is therefore an alternative performance indicator for the Group, defined as the difference
between operating income and other non-recurring operating income and expenses. This indicator is intended to facilitate
understanding of the operating performance of the Group and its Houses and can therefore be used as a way to estimate
recurring performance. It is presented in a manner that is consistent and stable over the long term in order to ensure thecontinuity and relevance of financial information.

EBITDAThe Group uses EBITDA as an alternative performance indicator to monitor its operating performance. This financial
indicator corresponds to recurring operating income plus net charges to depreciation, amortization and provisions on noncurrent operating assets recognized in recurring operating income.

Free cash flow from operations, available cash flow from operations and available cash flow
The Group uses an intermediate line item, “Free cash flow from operations”, to monitor its financial performance. Thisfinancial indicator measures net operating cash flow less net operating investments (defined as acquisitions and disposals
of property, plant and equipment and intangible assets).
The Group has also defined a new indicator, “Available cash flow from operations”, in order to take into account capitalized
fixed lease payments (repayments of principal and interest) pursuant to IFRS 16, and thereby reflect all of its operating
cash flows.
“Available cash flow” therefore corresponds to available cash flow from operations plus interest and dividends received,
less interest paid and equivalent (excluding leases).

Net debt
Net debt is one of the Group’s main financial indicators, and is defined as borrowings less cash and cash equivalents.
Lease liabilities are not included in the calculation of this indicator. Borrowings include put options granted to minority
interests. The cost of net debt corresponds to all financial income and expenses associated with these items, including
the impact of derivative instruments used to hedge the fair value of borrowings.

Effective tax rate on recurring income
The effective tax rate on recurring income corresponds to the effective tax rate excluding tax effects relating to other nonrecurring operating income and expenses.

Press release – July 24, 2024

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