Like many European companies, Kering reports sales results quarterly and updates on profits only at the half-year and full-year points.

SALES BREAKDOWN BY SEGMENT AND BRAND

• Luxury Activities: This segment’s revenue jumped by 11.3% on a constant-currency basis, to €2.1 billion, in 3Q16. Revenue growth in directly operated stores increased by double-digit percentages across all geographic regions excluding Japan. Sales in the Asia-Pacific region increased by 24%, while North America revenues grew by 17% and Western Europe revenues grew by 12%.
• Gucci: Revenues climbed by a robust 17% year over year in constant currency. Revenues were driven by sales in directly operated stores, which grew by 19%, and by Gucci e-commerce sales, which increased by over 50%.
• Bottega Veneta: Brand sales declined by 10.9% in constant currency, impacted by slower tourism in Western Europe and Japan.
• Yves Saint Laurent: Sales rocketed by 33.9% year over year in constant currency, driven by strong growth across all regions and all product categories.
• Other Luxury Brands: The Other Brands division saw a slight, 2.5% increase in overall sales growth, in constant currency. Sales in directly operated stores increased by 7% across all geographic regions except Japan. The Balenciaga, Stella McCartney and Alexander McQueen brands each posted 10% sales growth or higher. Brioni built sales momentum in directly operated stores, particularly in North America, but experienced weakness in the wholesale business. Jewelry brands Boucheron and Pomellato generated double-digit sales growth, but watches continued to suffer from a difficult market in 3Q16.
• Sports and Lifestyle Activities: This segment’s revenue jumped by 9.3% on a constant-currency basis, to €1.1 billion. Sales of Puma grew by 10.8% in constant currency. The brand achieved double-digit sales growth across all regions except Japan. Puma footwear sales performed particularly strongly, growing by 17% year over year, and Puma apparel sales climbed 10%. Volcom continued to be negatively impacted by challenges facing action sports retailers in the US market.

1Q–3Q16 RESULTS

Kering reported revenue of €8.9 billion for the first three quarters of 2016, up 5.6% and up 7.3% in constant currency.

OUTLOOK

The consensus estimate for Kering’s FY16 revenue stands at €12.1 billion, implying annual year-over-year growth of 4.4%. Analysts expect full-year operating profit of €1.8 billion, implying year-over-year growth of 6.8%, and EPS of €9.53, implying growth of 18.1% year over year.