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Kering reports record Q1 revenue

Kering SA said April 25 that the French luxury goods group achieved record revenue in the first quarter thanks to groupwide growth and robust performances by its three largest brands — Gucci, Yves Saint Laurent and Puma.

The Paris-based owner of luxury and sports goods brands said revenue for the first three months of 2017 jumped 31.2% on a reported basis to €3.57 billion from €2.72 billion in the same period a year earlier. On a comparable basis, revenue expanded 28.6%.

"Benefiting from somewhat more favorable market conditions, our strong delivery primarily stems from meticulous execution of our strategy and the creative audacity of our Houses," CEO François-Henri Pinault said in a statement. "In a climate of persistent geopolitical and macroeconomic uncertainties, our first quarter puts us in a particularly good position for the balance of the year."

Revenue in the luxury activities segment was up 34% on a reported basis and 31.6% on a comparable basis. Among the group brands, Italian apparel and jewelry designer Gucci enjoyed record growth of 51.4% on a reported basis and 48.3% on a comparable basis, backed by double-digit expansion in all product categories. Ready-to-wear, shoes and leather goods performed particularly well, the company said. Gucci accounted for 38% of Kering's first-quarter revenue.

Kering attributed Gucci's positive performance partly to "the brand's creative reinvention."

Meanwhile, French fashion brand Yves Saint Laurent reported revenue growth of 35.4% on a reported basis and 33.4% on a comparable basis. Sales in directly operated stores saw a double-digit increase in all regions except Japan. Italian fashion house Bottega Veneta saw revenue advance 4.7% on a reported basis and 2.3% on a comparable basis, backed by favorable market conditions as well as returning and new customers.

Other luxury brands, which include the couture and leather goods and the watches and jewelry categories, also enjoyed double-digit revenue increases, the company said.

Revenue in the sport and lifestyle activities segment was up 16.5% on a reported basis and 14% on a comparable basis. PUMA SE, a German designer of athletic and casual apparel and footwear, saw revenue jump 17.9% on a reported basis and 15.3% on a comparable basis, with all products enjoying growth in the period. Puma accounted for 95% of the segment's revenue and 28% of Kering's total revenue.