1Q16 RESULTS

French luxury group Kering reported 1Q16 revenue of €2,724 million, up 2.7% from €2,651 million in 1Q15. At constant currency, revenue grew by 4.0%. No profit data were published.

SALES BREAKDOWN BY SEGMENT AND BRAND

• Luxury Activities: This segment’s revenue rose by 2.8%, from €1,754 million in 1Q15 to €1,804 million in 1Q16. Revenue growth was 2.6% at constant currency, driven by brisk sales in Western Europe and Japan.
• Gucci: Sales grew by 2.9% year over year in reported currency, and by 3.1% at constant currency. The success of Gucci’s new collections in ready-to-wear and shoes, and its recently introduced leather goods category, drove sales growth.
• Bottega Veneta: Sales fell by 7.6% in reported currency and by 8.3% at constant currency. A decline in tourism in Western Europe resulted in lower sales at the brand’s directly operated stores.
• Yves Saint Laurent: Sales jumped by 27.0% at constant and reported currency, driven by double-digit growth across all regions, with all product categories contributing to the increase.
• Other Luxury Brands: The other brands posted mixed performances, with overall sales in this group falling by 2.9% in reported currency and by 3.3% at constant currency. The company said the fall was mainly due to Balenciaga and Boucheron being strongly exposed to France. The decline was slightly offset by the positive performances of Stella McCartney and Alexander McQueen.
• Sports and Lifestyle Activities: This segment’s revenue increased by 2.6%, from €890 million in 1Q15 to €913 million in 1Q16. At constant currency, revenue grew by 7.0%.
• Puma continued its growth trend across all product categories and regions, with the Asia-Pacific region and Western Europe recording stronger growth. Puma sales grew by 3.7% in reported currency and by 8.1% at constant currency.

GUIDANCE

CEO François-Henri Pinault remarked that Kering’s positive performance under challenging market conditions bears testimony to its focus on driving organic growth. He noted that the company is confident it will extend its “growth trajectory over the full year.”