Sharp rise in leather goods revenue for Kering in Q1

Worldwide
Published:  25 April, 2018

The French luxury conglomerate has reported another quarter of “very strong” revenue growth, well balanced across regions and distribution channels.

Kering’s consolidated revenue in the first quarter of 2018 totalled €3,107.8 million, up +27.1% as reported and +36.5% on a comparable basis, with a sharp rise in total revenue from the Houses (up +36.8% on a comparable basis). “Kering maintained its outstanding sales momentum in the first quarter. Under its new luxury pure player profile, the Group clearly outperformed a market that remains well oriented”, said François-Henri Pinault, Chairman and CEO, Kering.

On a comparable basis, the Gucci brand is reported to continue its “spectacular growth path” (+48.7%), while Yves Saint Laurent recorded a sustained sales increase (+19.6%), and Bottega Veneta continues with its implementation action plan (+0.7%). The other Houses are said to have posted “very strong growth” (+37.9%).  “Sales from Couture & Leather Goods rose sharply, driven by an excellent performance from Balenciaga, whose ready-to-wear and shoes categories continued to deliver stellar growth.” 

Kering says its operated stores continued to see strong growth momentum (+ 39.9% on a comparable basis), with double-digit growth in all geographic regions, particularly North America (+ 54.3%) and Asia Pacific (+42.2%). Online sales more than doubled during the quarter, while revenue from the wholesale network, “where the collections of the Group’s Houses have been enthusiastically received”, rose +30.5% on a comparable basis. 

In its statement, the Group notes that Puma, Volcom and Stella McCartney brands are presented as ‘discontinued’ operations for the first quarter of 2018, in accordance with IFRS 5.