Solid Organic Growth for Kering
Strong performance in Luxury in an uncertain environment.
In the first quarter of 2016, Luxury activities achieved 2.6% revenue growth on a comparable basis (up 2.8% as reported), with sales advancing 3% in both directly operated stores (71% of total sales) and in the wholesale network. Brisk activity in Western Europe and Japan continues to power growth in directly operated store sales, supported by a stellar performance in certain emerging countries.
François-Henri Pinault, Kering’s Chairman and Chief Executive Officer, commented:«Kering’s solid first-quarter 2016 performance in a challenging market environment bears testimony to our focus on driving organic growth. The new creative energy is maintained at Gucci and the brand’s new collections continue to draw an enthusiastic response. We are confident that we can extend our growth trajectory over the full year thanks to our multi-brand model, our continued strict operating and financial discipline, and the top-quality work of all our teams.»
Gucci confirmed its growth momentum in the first quarter of 2016, driven by the success of its new collections. Sales climbed 3.1% on a comparable basis and 2.9% as reported. Revenue generated in directly operated stores rose 3%, led by strong performances in Western Europe, while wholesale was positive for the second consecutive quarter. The arrival of new collections clearly benefited revenues of the brand’s Seasonal offer (Ready-to-Wear, Shoes) and sales of recently introduced Leather Goods.
Bottega Veneta‘s first-quarter 2016 sales fell by 8.3% on a comparable basis and by 7.6% as reported. Lower sales in directly operated stores reflect the slowdown in tourism flows, particularly in Western Europe, which nevertheless enjoyed sustained local demand, as well as in North America and Japan. Bottega Veneta continues to shift its focus to local customers and new Leather Goods lines are instrumental in successfully enhancing the visibility of its new products in its stores.
Yves Saint Laurent posted another sterling performance in the first three months of the year (up 27% on a comparable basis and as reported), lifted by excellent sales in directly operated stores. All regions reported double-digit growth and all product categories contributed to the strong momentum. The new Creative Director Anthony Vaccarello will unveil his first collection for Spring/Summer 2017 in October 2016.