Consolidated revenue up 10.5%
Luxury activities up 11.3%
Sport & Lifestyle activities up 9.3%
Regulatory News:
Kering (Paris:KER):
"Our excellent sales in the third quarter underscore the
relevance of our strategy and the effectiveness of its execution.
In a complex environment, we stepped up the pace of revenue growth
and continued to gain market share. Thanks to the creativity of our
brands and the outstanding customer experience they offer, we
achieved double-digit increases across all geographic regions
excluding Japan. Gucci and Yves Saint Laurent performed remarkably
well, while Puma confirmed its solid growth trajectory. We have
laid the foundations for steady, sustainable growth, and are highly
confident about the full year."François-Henri Pinault, Chairman
and Chief Executive Officer of Kering
Sharp acceleration in Group organic growth, which stood at
10.5%
- Third-quarter 2016 revenue of €3,185
million, up 10.5% on a comparable Group structure and exchange rate
basis, up 10% as reported.
- Sharp acceleration in growth.
Double-digit comparable revenue growth across all geographic
regions apart from Japan.
Very strong performance in Luxury
- Revenue up 11.3% on a comparable basis
(up 12% as reported).
- Remarkable growth at Gucci (up 17%) and
Yves Saint Laurent (up 33.9%), both of which continued to gain
market share.
Excellent growth momentum in Sport & Lifestyle
- Revenue up 9.3% on a comparable basis
(up 6.5% as reported).
- Sustained double-digit growth at Puma
(up 10.8%), driven by the success of its offering.
LUXURY ACTIVITIES: EXCELLENT PERFORMANCE
Luxury activities generated €2,115 million in revenue during the
period, up 11.3% on a comparable basis and 12% as reported, marking
the fastest quarterly growth rate in comparable sales in the past
three years.Aside from the remarkable performance by Gucci and Yves
Saint Laurent, revenue growth for the other brands was in line with
second-quarter trends.Sales in directly operated stores enjoyed
double-digit growth across all geographic regions excluding Japan,
with strong growth of 24% in Asia-Pacific, a very steady 17%
increase in revenue in North America and an extremely good
performance in Western Europe, which expanded by 12%.
Gucci: exceptional growth, confirming the brand's creative
authority
Gucci gained further momentum in the third quarter,
significantly outperforming the sector with a 17% increase in
revenue on a comparable basis (up 17.8% as reported). Sales were up
sharply across all product categories and regions, excluding Japan,
where market conditions were lacklustre for the sector as a whole.
Gucci sales in directly operated stores rose by a very strong 19%
based on comparable data. Both men's and women's Shoes and
Ready-to-Wear enjoyed considerable success, as did Leather Goods,
where GG Marmont, Sylvie and Dionysus, for example, confirmed their
status as the stars of the handbag offering.Alessandro Michele's
latest show, one of the most eagerly anticipated events of the
Milan Fashion Week, received an enthusiastic response, again
confirming the success of the brand's creative reinvention. Gucci
collections continued to meet the approval of its clientele while
attracting an increasing number of new customers.The brand has a
particularly innovative digital strategy, which included in the
quarter acclaimed partnerships with artists (GucciGhost product
line and the #24HourAce initiative) and capsule collections sold
exclusively online (Gucci Garden). Sales from Gucci's e-commerce
website increased by more than 50% during the quarter.
Bottega Veneta: ongoing implementation of the action
plan
Third-quarter sales at Bottega Veneta were again impacted by
slower tourism, particularly in the mature markets of Western
Europe and Japan. Revenue was down 10.9% on a comparable basis and
9.3% as reported. While sales in directly operated stores were
lower in the quarter, they delivered a slight improvement compared
to the second-quarter trend thanks to resilient sales to local
customers in Europe and growth across all main markets in
Asia-Pacific, with the exception of Hong Kong.The Maison is pushing
ahead with the implementation of its action plan, which notably
involves renewing the Leather Goods offering and improving the
in-store visibility of all new products. Under this initiative,
Bottega Veneta introduced new models based on intrecciato, a
leatherwork technique that is emblematic of the Maison's
craftsmanship. The brand also continued to develop its Shoes
category, which confirmed its momentum in the third quarter. The
universally acclaimed Spring/Summer 2017 anniversary collection
showcased the unique heritage and strong foundations that will
ensure Bottega Veneta's future growth.
Yves Saint Laurent: significant revenue increase, balanced
growth
Yves Saint Laurent continued to enjoy extremely strong growth in
the third quarter, with revenue rising by an exceptional 33.9% on a
comparable basis and 34% as reported.This latest increase in sales
was achieved across all geographic regions and product categories,
including men's and women's Ready-to-Wear as well as Shoes and
Leather Goods. New collections including handbag models such as the
Sunset Monogramme continue to be met with great excitement by the
clientele, while permanent collections remain enduringly popular.
This enthusiasm can be witnessed both in the brand's stores and on
its e-commerce website, revenue from which nearly doubled in the
third quarter.The first collection of Anthony Vaccarello for Saint
Laurent was shown on 27 September at the Maison's future
headquarters on rue de Bellechasse on Paris's left bank, to great
acclaim.
Other Luxury brands: performance in line with second-quarter
trends
Third-quarter sales at the Group’s Other Luxury brands were up
2.5% on a comparable basis, or up 2.4% as reported. As with Luxury
activities as a whole, sales in directly operated stores rose
steadily across all geographic regions excluding Japan, growing by
7% on a comparable basis. Sales by Couture & Leather Goods
brands continued to climb, with Balenciaga, Stella McCartney and
Alexander McQueen each posting growth of around 10% or more. Brioni
built promising sales momentum in directly operated stores,
particularly in North America, but was held back by its wholesale
business. The Maison is moving ahead with initiatives to strengthen
its market positioning.
In the Jewelry segment, Boucheron and Pomellato demonstrated
their vitality, each generating double-digit growth during the
quarter. Boucheron performed well in both Jewelry and High Jewelry
thanks to new creative initiatives, such as the 26 Vendôme High
Jewelry collection unveiled during Paris Haute Couture Week in
July. While still feeling the effects of a difficult market, brands
in the Watches segment continued to adapt their offering and
communications.
SPORT & LIFESTYLE ACTIVITIES: SUSTAINED GROWTH BY
PUMA
Puma grew by 10.8% on a comparable basis and was up 8.3% as
reported during the third quarter, building on its innovative
products and renewed appeal. The Shoes category performed
particularly well, posting 17% growth, fuelled by the success of
new models such as Ignite, Fierce and Fenty. Revenue from the
Apparel category was up a solid 10%. With the exception of Japan,
Puma achieved double-digit growth across all geographic regions,
enjoying strong performances in Europe and the Americas, and
sustained expansion in Mainland China. Volcom continued to be
impacted by the challenges facing action sports retailers in the
US.
SIGNIFICANT EVENTS SINCE JULY 1, 2016
Rankings and certificationsOn 20 September, 2016, the
Arborus Fund, the leading provider of funding support for gender
equality in the workplace in Europe and worldwide, and Bureau
Veritas awarded Kering the Gender Equality European &
International Standard (GEEIS) label, in recognition of the Group's
actions to promote equality between women and men in the
workplace.
On 26 September, 2016, Kering was recognised as one of the top
25 most diverse and inclusive publicly listed companies globally,
according to the Thomson Reuters Diversity & Inclusion
(D&I) Index. Kering was the highest ranking luxury company to
be included in the top 25, placing 22nd out of 4,255 publicly
traded companies.
Bottega Veneta: appointment of Claus-Dietrich LahrsOn 29
September, 2016, Kering announced the appointment of Claus-Dietrich
Lahrs as CEO of Bottega Veneta, effective October 4, 2016. He
reports directly to François-Henri Pinault and is a member of the
Group's Executive Committee.
Kering: appointment of Carlo Alberto BerettaOn 29
September, 2016, Kering also announced the appointment of Carlo
Alberto Beretta to the newly created position of Chief Client &
Marketing Officer, effective October 4, 2016. He reports directly
to François-Henri Pinault and remains a member of Kering's
Executive Committee.
Gucci: top Italian brand on Interbrand rankingOn 5
October, 2016, Gucci confirmed its status as the world's most
valuable Italian brand, across all industries, when it was named
the country's leading representative on Interbrand's 2016 Best
Global Brands ranking for the 17th consecutive year.
Christopher Kane: appointment of Nikolas TalonpoikaOn 11
October, 2016, Nikolas Talonpoika was appointed CEO of Christopher
Kane. He reports to Jean-François Palus, Kering Group Managing
Director.
Balenciaga: appointment of Cédric CharbitOn 24 October,
2016, Kering announced the appointment of Cédric Charbit as CEO of
the Maison Balenciaga, effective 28 November 2016. He will report
directly to François-Henri Pinault.
AUDIOCAST
Kering will hold an audiocast for analysts and investors
at 6.00pm (CET)/5.00pm (GMT)/12.00pm (US, ET) on Tuesday,
October 25, 2016.
Available on www.kering.com (Finance section).
The audiocast will also be available by phone, using one of the
dial-in numbers below:
France +33
(0)1 76 77 22
25UK +44
(0)20 3427
1918US +1 (646)
254 3360
Access code: 1058603
A replay of the audiocast will also be available at
www.kering.com (Finance section).
PRESENTATION
The slides (PDF) will be available ahead of the audiocast at
www.kering.com.
About KeringA global Luxury group, Kering develops an
ensemble of luxury houses in fashion, leather goods, jewellery and
watches: Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen,
Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas
Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and
Ulysse Nardin. Kering is also developing the Sport & Lifestyle
brands Puma, Volcom and Cobra. By ‘empowering imagination’, Kering
encourages its brands to reach their potential, in the most
sustainable manner.The Group generated revenues of more than €11.5
billion in 2015 and had more than 38,000 employees at year end.The
Kering share is listed on Euronext Paris (FR 0000121485, KER.PA,
KER.FP).
www.kering.comTwitter: @KeringGroupLinkedIn:
KeringInstagram: @kering_officialYouTube: KeringGroup
APPENDIX 1: REVENUE FOR THE THIRD QUARTER OF
2016AND THE NINE MONTHS ENDED SEPTEMBER 30, 2016
(in € millions)
Q3 2016 Q3 2015
Reportedchange
Comparablechange(1)
9 monthsended Sept. 30,
2016
9 monthsended Sept.30,
2015
Reportedchange
Comparablechange(1)
Luxury
activities 2,114.9 1,888.5
+12.0% +11.3% 5,992.8
5,650.5 +6.1% +6.5% Gucci
1,088.3 924.1 +17.8% +17.0% 3,035.8 2,798.3 +8.5% +9.3% Bottega
Veneta 293.8 324.0 -9.3% -10.9% 865.0 953.2 -9.3% -9.7% Yves Saint
Laurent 326.1 243.4 +34.0% +33.9% 874.0 686.5 +27.3% +27.7% Other
Luxury brands 406.7 397.0 +2.4% +2.5% 1,218.0 1,212.5 +0.5% +0.8%
Sport & Lifestyle activities 1,064.4
999.6 +6.5% +9.3% 2,861.2
2,730.6 +4.8% +9.2% Puma 994.1 918.2 +8.3%
+10.8% 2,680.5 2,519.4 +6.4% +10.6%
Other Sport & Lifestylebrands
70.3 81.4 -13.6% -7.7% 180.7 211.2 -14.4% -8.5% Corporate
and other 5.4 7.1 -23.9% -22.9% 23.6 26.6 -11.3% -10.9%
Kering – Continuing
activities 3,184.7 2,895.2
+10.0% +10.5% 8,877.6
8,407.7 +5.6% +7.3%
(1) On a comparable Group structure and exchange rate basis.
APPENDIX 2: REVENUE FOR THE FIRST
HALF,SECOND QUARTER AND FIRST QUARTER OF 2016
(in € millions)
H1 2016 H1 2015
Reportedchange
Comparablechange(1)
Q2 2016 Q2 2015
Reportedchange
Comparablechange(1)
Q1 2016 Q1 2015
Reportedchange
Comparablechange(1)
Luxury activities
3,877.9 3,762.0 +3.1%
+4.0% 2,074.2 2,008.0
+3.3% +5.2% 1,803.7
1,754.0 +2.8% +2.6% Gucci
1,947.5 1,874.2 +3.9% +5.4% 1,053.3 1,005.2 +4.8% +7.4% 894.2 869.0
+2.9% +3.1% Bottega Veneta 571.2 629.2 -9.2% -9.1% 303.3 339.2
-10.6% -9.8% 267.9 290.0 -7.6% -8.3% Yves Saint Laurent 547.9 443.1
+23.7% +24.2% 278.7 231.7 +20.3% +22.1% 269.2 211.4 +27.3% +26.5%
Other Luxury brands 811.3 815.5 -0.5% -0.0% 438.9 431.9 +1.6% +2.9%
372.4 383.6 -2.9% -3.3%
Sport & Lifestyle
activities 1,796.8 1,731.0 +3.8%
+9.1% 883.7 841.0 +5.1% +11.4%
913.1 890.0 +2.6% +7.0% Puma 1,686.4
1,601.2 +5.3% +10.6% 830.5 776.2 +7.0% +13.2% 855.9 825.0 +3.7%
+8.1%
Other Sport & Lifestylebrands
110.4 129.8 -14.9% -8.9% 53.2 64.8 -17.9% -10.7% 57.2 65.0 -12.0%
-7.1% Corporate and other 18.2 19.5 -6.7% -6.7% 11.2 12.3
-8.9% -8.2% 7.0 7.2 -2.8% -4.1%
Kering – Continuing activities 5,692.9
5,512.5 +3.3% +5.5%
2,969.1 2,861.3 +3.8%
+6.9% 2,723.8 2,651.2
+2.7% +4.0%
(1) On a comparable Group structure and exchange rate basis.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161025006259/en/
KeringPressEmilie Gargatte, +33 (0)1 45 64 61
20emilie.gargatte@kering.comorFloriane Geroudet, +33 (0)1 45 64 66
00floriane.geroudet@kering.comorAnalysts/investorsClaire
Roblet , 33 (0)1 45 64 61 49claire.roblet@kering.comorAndrea
Beneventi, +33 (0)1 45 64 63 28andrea.beneventi@kering.com