Shoes and leather goods lift Kering’s Q1 sales

Worldwide
Published:  27 April, 2017

French luxury conglomerate Kering has posted record results in the first quarter of 2017, across all activities and geographical regions.

The Group posted total consolidated revenue up 31.2% as reported (+28.6% on a comparable basis) in the first quarter of 2017. Revenue for its Luxury activities increased 34% (+31.6% on comparable), of which Gucci posted sales revenue up 51.4% (+48.3% comparable). The Sport & Lifestyle segment also scored positive results in the quarter, with total revenue up 16.5% as reported (+14% on comparable).

Revenue generated by Luxury activities totalled €2,417.1 million in the first quarter of 2017. Sales growth in the Group’s directly operated store network is said to have been particularly high, at 36.6% on a comparable basis, driven by remarkable performances in Western Europe and the Asia Pacific region, which reported retail sales increases on a comparable basis of 49.9% and 46.7%, respectively. Growth in retail sales is reported to have been significant in North America and the rest of the world, +29.7% and 28.1%, respectively, on a comparable basis. “Online sales leapt 60.1% on a comparable basis, underscoring the success of the digital strategies implemented by Kering’s Luxury Houses”, says the report. Wholesale revenue also grew 20.2% on a comparable basis.

In terms of brands, a sustained growth trajectory has been reported for Yves Saint Laurent (+35.4%), while positive trends were observed at Bottega Veneta (+4.7%) and Balenciaga had a ‘marked sales acceleration’ in the period, according to the Group. However, the most remarkable growth in the category was reported by Gucci whose revenue was up 51.4% as reported and 48.3% on a comparable basis, with all regions and product categories contributing to the overall rise. Sales in directly operated stores were up 51.4% on a comparable basis, with especially sharp increases in Western Europe (+66.4% on a comparable basis) and the Asia Pacific region (+63.1% on a comparable basis). “Gucci’s collections once again proved extremely popular during the period, with double-digit growth for all product categories and ever-increasing demand for Ready-to-Wear and shoes. Leather goods also experienced excellent momentum, reflecting Gucci's talent in creating iconic models and successfully renewing them season after season”, says Kering.

Performance in the Sports & Lifestyle activities is said to have been boosted by Puma, which reported record quarterly revenue of €1,008.9 million. All geographic regions except Japan are said to have registered double-digit sales growth and footwear was the leading product category, with sales up 24.8% on a comparable basis.