Kering shares jump on positive outlook despite profit fall

Shares in French luxury products group Kering jumped in initial trading on Thursday on a positive outlook for performance despite a profits fall. The shares surged 5.12 per cent to 160.10 euros. The overall French stock market was up 0.58 per cent. This was after the group, which owns the Gucci, Saint Laurent and Puma brands, announced late on Wednesday that first-half net current profits were down 4.7 per cent from the equivalent figure last year to 555 million euros ($743 million). Current operating profit fell by 3.9 per cent to 810 million euros, and the operating margin, a basic measure of profitability, fell by a full percentage point to 17.1 per cent. Results by Puma, the third-biggest sportswear group in the world fell sharply, but the Saint Laurent luxury brand raised sales by 25.6 per cent to 321 million euros and its operating profit jumped by half to 41 million euros. Kering said that currency factors had reduced reported sales by 196 million euros. Overall sales rose by 1.5 per cent to 4.75 billion euros, although sales by the sports brands fell by 5.60 per cent. But Kering said it expected operating performance to improve in the second half of the year, according to AFP.