Driven by luxury and sports segments, Kering Q3 revenues rise 12 percent

Friday, 23 October 2015

REPORT

Kering posted revenue of 2,895 million euros (3,216 million dollars) in the third quarter of 2015, up 12 percent on the third quarter of 2014 as reported and up 3.1 percent on a comparable group structure and exchange rate basis, in line with the 2015 first-half performance.

“In the third quarter, the group posted solid sales growth in line with its performance in the first half. In a volatile macroeconomic and monetary environment characterised by sharp contrasts across regions, our well-balanced economic model and brand portfolio enabled our luxury activities to deliver healthy performances, powered by the momentum in directly operated stores and by a surge in tourist shoppers in Western Europe and Japan," said François-Henri Pinault, Kering's Chairman and Chief Executive Officer.

Growth reported by the luxury segment

Luxury activities posted strong growth in the third quarter of 2015, with revenue as reported surging by 14 percent. In a persistently uneven foreign exchange environment, performance was driven by retail sales in directly operated stores (up 6 percent on a comparable basis), and the dynamism of mature markets such as Western Europe and Japan, up 29 percent and 26 percent, respectively, on a comparable basis.

Gucci posted an 8.6 percent increase in sales on a reported basis, virtually stable on a comparable basis (down 0.4 percent), during a period marked by positive performances in directly operated stores in both Western Europe and Japan, up 27 percent and 24 percent, respectively, on a comparable basis.

Sales at Bottega Veneta rose 13.2 percent as reported and 4.3 percent on a comparable basis. Revenue from directly operated stores was up 4 percent on a comparable basis, lifted in particular by solid performances in Western Europe and in Japan, up 33 percent and 15 percent, respectively, on a comparable basis.

Yves Saint Laurent sales surged by 36.9 percent as reported and by 26.6 percent on a comparable basis. The brand's product categories, geographic regions and distribution channels contributed evenly to this stellar performance. Yves Saint Laurent posted particularly strong sales growth in directly operated stores in Asia-Pacific, Western Europe and Japan with sales up 27 percent, 40 percent and 77 percent, respectively, on a comparable basis.

In the third quarter of 2015, the Other Luxury brands posted reported revenue growth of 16.5 percent, down 1 percent on a comparable basis. Sales by the Couture & Leather Goods brands advanced 12 percent in directly operated stores, owing to solid performances by Balenciaga, Stella McCartney and Alexander McQueen. The jewellery brands also posted double-digit revenue growth over the period, up 11 percent on a comparable basis, benefiting from good momentum at Boucheron, Pomellato and Qeelin. However, the watches brands continued to be held back by an unfavourable market context.

Sales at sport & lifestyle segment increase

Sales generated by the Sport & Lifestyle activities were up 8.4 percent as reported and 3.4 percent on a comparable basis during the quarter. Puma’s sales were up 8.3 percent on a reported basis and up 3.9 percent on a comparable basis, and were again lifted by positive sales trends in the footwear segment in particular. Over the first nine months of the year, Puma recorded revenue growth of more than 5 percent on a comparable basis, and the implementation of its relaunch initiatives has remained on track.

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