Kering luxury sales up in Q3

France
Published:  27 October, 2014

In the third quarter of 2014, Kering recorded €2.6 billion in revenue, up 4.4% on a comparable Group structure and exchange rate basis and up 3.3% on a reported basis. Revenue for the first nine months of the year was up 4.2% based on comparable Group structure and exchange rates.

Luxury activities reported sales growth of 3.5% on a comparable basis, driven by the strong performances of directly operated stores, particularly in North America and Japan, while Sport & Lifestyle activities advanced 6.1% on a comparable basis with sales momentum powered by the relaunch plan at Puma.

François-Henri Pinault, Chairman and CEO commented: "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. Sport & 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."

Gucci

Gucci sales in directly operated stores during the third quarter of 2014 are in line with performances recorded during the second quarter. Positive sales trends reported in directly operated stores in North America and Japan, up 8% and 4% respectively on a comparable basis, confirm the success of Gucci’s brand elevation strategy.

Leather goods delivered a good performance, driven in particular by the successful launch of the new handbag lines Swing and Bright Diamante. Women's Ready-To-Wear and Shoes also posted strong sales over the quarter.

Bottega Veneta

Bottega Veneta posted solid growth in the third quarter of 2014 with revenue jumping 11% on a comparable basis (up 10% in its directly operated stores).

All geographic areas contributed evenly to this performance.

Leather goods continued to post very solid performances during the quarter.

Yves Saint Laurent

Yves Saint Laurent once again turned in an outstanding performance, reporting third-quarter growth of 28% on a comparable basis, driven by exceptionally strong sales in directly operated stores, particularly in North America (up 47%) and Western Europe (up 26%).

All product categories, in particular leather goods and men's and women's ready-to-wear reported solid growth.

Other Luxury brands

Kering's other luxury brands posted revenue growth of 1.8% on a comparable basis in the third quarter of 2014. Balenciaga and the Group's British designer brands (Stella McCartney, Alexander McQueen and Christopher Kane) reported strong sales growth.

Jewelry and Timepieces recorded more mixed sales performances mainly resulting from cautious third-party distributors in the Timepieces sector and high comparison bases for Boucheron.

Sport & Lifestyle

Sport & Lifestyle activities posted solid growth in the third quarter of 2014 with revenue up 6% on a comparable basis.

Puma, which launched its global advertising campaign Forever Faster in early August, recorded very positive third-quarter growth with accelerated sales momentum (up 6% on a comparable basis). This upswing is mainly due to the success of the 2014 Autumn/Winter collection, improved performances in Western Europe (up 6%) – the brand's historic market – and footwear's return to sales growth (up 2%).

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