YSL and Gucci boost Kering's results

Worldwide
Published:  25 April, 2016

Good retail performance of Yes Saint Laurent and Gucci have contributed to Kering’s first-quarter revenue growth in 2016, while other brands of the luxury conglomerate have recorded contrasting performances in a uncertain environment.

Kering’s total revenue for the first-quarter of 2016 stood at around €2.72 million, up 4% on a comparable basis and 2.7% as reported. Sales were up 2.6% on a comparable basis (+2.8% as reported) for the luxury division, lifted by retail in Western Europe, Japan and emerging countries,  

According to Kering, Gucci’s new creative energy has generated a growth momentum as demonstrated by the success of its new collections. Sales climbed 3.1% on a comparable basis (+2.9% as reported). Revenue in directly operated stores rose 3%, led by strong performances in Western Europe. The arrival of new collections is said to have benefited sales of the recently introduced leather goods.

Yves Saint Laurent posted positive performance in the period (up 27% on a comparable basis and as reported), lifted by excellent sales in directly operated stores. All regions reported double-digit growth, and all product categories contributed to the strong momentum.

However, the other luxury brands put in contrasting performances; down 3.3% overall on a comparable basis (down 2.9% as reported). Bottega Veneta's first-quarter 2016 sales fell 8.3% on a comparable basis and by 7.6% as reported. Growth in the Couture & Leather Goods brands was powered by the directly operated store network. Stella McCartney and Alexander McQueen are said to have posted solid performances.

As for Kering’s Sport & Lifestyle division, first-quarter 2016 sales were up 7% on a comparable basis (+2.6% as reported). The Group said it continues with Puma’s growth trajectory.

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