Kering reports 'sustained growth' during Q3, 2014

Friday, 24 October 2014

REPORT_ Revenue at Kering increased 4.4 percent to 2.6 billion euros on a comparable basis during the third quarter of the financial year 2014. Revenue for the first nine months of the year was up 4.2 percent. The Luxury activities segment continues to remain firm and reported a sales growth of 3.5 percent on a comparable basis, and Sports and Lifestyle advanced 6.1 percent.

“The Group's consistent revenue growth quarter after quarter testifies to the relevance of our multi-brand strategy. Luxury activities held firm in a complex economic environment thanks to a strong sales uptrend in our network of directly operated stores,” commented François-Henri Pinault, Chairman and Chief Executive Officer.

“Sport and Lifestyle activities posted positive sales trends driven by marketing efforts at Puma, whose relaunch plan is beginning to feed through. Faced with uncertain market conditions, we remain vigilant. The dynamic performance of the Group, which has achieved steady growth over the first nine months of the year, allows us to pursue with confidence and discipline the implementation of our strategy, aimed at taking full advantage of the strengths inherent in each of our brands.”

During the third quarter of 2014, Kering's Luxury sector was driven by a strong performance at directly operated stores across all its brands, up 6 percent on comparable basis. In the Group's own stores, sales growth in mature markets, which was up 6 percent, was boosted by solid performances in North America, up 12 percent, and Japan, up 7 percent. In emerging markets, sales held firm, up 4 percent.

In particular, Gucci sales slipped 1.6 percent to 851 million euros, although Kering highlighted the positive trends witness in directly operated stores, which where in line with performances recorded during the second quarter. Bottega Veneta posted solid growth, with revenue increasing 11 percent on a comparable basis. Yves Saint Laurent once again turned in an outstanding performance, reporting a growth of 27.6 percent to 177.8 million euros on a comparable basis, driven by exceptionally strong sales in directly operated stores. Kering's remaining Luxury brands posted revenue growth of 1.8 percent on a comparable basis during the third quarter.

Sport and Lifestyle activities posted solid growth. Puma reported a very positive growth with accelerated sales momentum, up 6 percent on a comparable basis and positive sales trends at Volcom and Electric reflect the successful repositioning of these brands.

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