On a comparable basis, group revenue for the period was up by 1%. Meanwhile, revenue in the directly operated store network, including e-commerce, rose by 4% on a comparable basis. Wholesale and other revenue was down by 10% on a comparable basis.
Kering noted that this was driven by good momentum in Western Europe and Japan, while revenue was down in North America but resumed growth in Asia-Pacific due to the gradual recovery of the Chinese market.
For Gucci, first quarter revenue was up by 1% both reported and comparable to €2.6 billion, with sales in the directly operated store network also up by 1% on a comparable basis. While revenue from all key product categories was up, Kering noted particular growth in handbags, Valigeria travel accessories and women’s ready-to-wear. Wholesale revenue was down 7% on a comparable basis.
Yves Saint Lauren saw a strong start to the year with 9% reported growth and 8% on a comparable basis, with total revenue of €806 million. Sales in the directly operated store network increased by 14% on a comparable basis, driven by leather goods and ready-to-wear. Kering noted that streamlining of the wholesale channel continued in Q1 and revenue was down by 12% on a comparable basis.
Meanwhile, Bottega Veneta had revenue of €395 million, flat year-on-year. Reportedly, the brand continued to overhaul its directly operated store network in the quarter, expanding selling space and refurbishing stores. Retail revenue was up 5% on a comparable basis and wholesale revenue was down 14%.
Other Houses generated revenue of €890 million for the group, down 9% as reported and on a comparable basis. For this category, sales in the directly operated store network rose by 7% on a comparable basis. Kering noted that Balenciaga, Alexander McQueen and Brioni had strong results in the period. Also impacted by streamlining, wholesale revenue was down by 32% on a comparable basis.
Kering CEO François-Henri Pinault said: “Kering’s performance in the first quarter remained mixed, as we had anticipated. As we work to augment the desirability of our brands and raise their profile in key markets, we are encouraged by the gradual improvement in activity month after month during the period. A host of initiatives undertaken by all our Houses to enhance their appeal and exclusivity lays the foundations for sustained, profitable growth.”
