Record operating income for Kering

Worldwide
Published:  13 February, 2017

The French luxury conglomerate has posted excellent results for 2016, with record-high operating income and a sharp acceleration in growth for the second-half.

Kering has posted total consolidated revenue of €12.38 billion in 2016, up 6.9% as reported, 8.1% on a comparable basis. Recurring operating income for the year was €1.88 billion, up 14.5% versus the prior year. The Group recorded the strongest year-on-year revenue increase since 2012, driven by organic growth, with a sharp acceleration in the second half, coming in at 10.5% on a comparable basis and “continuing the strong momentum that started in the first six months, which saw a 5.5% comparable increase”.

The Group has recorded a significant market out-performance for its Luxury activities, up 7.7% as reported, 7.8% on a comparable basis. Yves Saint Laurent and Gucci posted exceptional comparable growth, +25.5% and +12.7%, respectively for the year, as well as an excellent fourth quarter, with revenue up 11.3% comparable. The Sport & Lifestyle activities recorded a 5.5% increased as reported, 9% on a comparable basis, with a robust 10.4% comparable growth at Puma.

"In a sector undergoing far-reaching transformation, our foresight and the quality of execution of our strategy enabled us to outperform our peers and deliver outstanding operating and financial performances. Rewarding our vision of luxury, grounded in powerful creative content and long-lasting stylistic codes, we continue to gain market share, as witnessed by the spectacular performances of Gucci and Yves Saint Laurent last year” said François-Henri Pinault, Chairman and CEO, Kering. “In 2017, in an uncertain macroeconomic and geopolitical environment, we will keep concentrating on the organic growth of our Houses and on value creation, so as to intensify our current momentum”, he added.

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