Luxury momentum for Kering

Worldwide
Published:  26 October, 2016

The French luxury conglomerate has reported a sharp acceleration in Group organic growth, and double-digit comparable revenue growth across all geographic regions, except Japan, in the third quarter of 2016.

Kering has reported third-quarter 2016 revenue of €3.19 billion, up 10.5% on a comparable Group structure and exchange rate basis, and +10% as reported. Double-digit comparable revenue growth was recorded across all geographic regions apart from Japan.

Overall, the Group’s luxury division has posted a “very strong performance” with revenue up 11.3% on a comparable basis (+12% as reported), generating €2.12 billion in the period, and marking the fastest quarterly growth rate in comparable sales in the past three years. 

Aside from the remarkable performance by Gucci (+17%) and Yves Saint Laurent (+33.9%), revenue growth for the other brands was in line with second-quarter trends. Sales in directly operated stores enjoyed double-digit growth across all geographic regions, excluding Japan, with strong growth of 24% in Asia-Pacific, “a very steady 17% increase in revenue in North America and an extremely good performance in Western Europe, which expanded by 12%”.

However, third-quarter sales at Bottega Veneta were again said to be impacted by slower tourism, particularly in the mature markets of Western Europe and Japan. Revenue was down 10.9% on a comparable basis and 9.3% as reported. The Maison is said to be pushing ahead with the implementation of its action plan, which notably involves renewing the leather goods offering and improving the in-store visibility of new products. The brand has introduced new models based on intrecciato, a leatherwork technique that is emblematic of the Maison's craftsmanship, and continues to develop its footwear category, which confirmed its momentum in the third quarter.

Sales from couture & leather goods brands continued to climb, with Balenciaga, Stella McCartney and Alexander McQueen each posting growth of around 10% or more. 

Chiara Morelli, Environmental P&L Director at Kering, will be presenting the luxury brand’s sustainability program at the upcoming Leather and Sustainability in Retail conference taking place in London this November. Stefan Seidel, Head of Corporate Sustainability at PUMA, Kering’s sportswear brand, will also present  "Why traceability is a necessity" at the half day event.

The conference will take place during the afternoon of Thursday November 17, 12-5.30pm at the newly built Leathersellers' Livery Hall, The Leathersellers' Livery Company in the city of London.

The conference is co-organised by ILM and BLC Leather Technology Centre.

For more information about the conference please contact Deborah Taylor by email: deborah@blcleathertech.com or call +44(0)1604 679940. 

Click here to sign up and register to attend the conference:  

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