Tuesday, April 24, 2018
2018 first-quarter revenue - Another quarter of very strong revenue growth
Consolidated revenue in the first quarter of 2018 (1) : €3,107.8 million,
up 27.1% as reported and 36.5% 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. Gucci, Saint Laurent and Balenciaga set a high mark within a Group that delivered sharp growth as a whole. In the balance of the year, we face a high base of comparison and a tough currency environment, but we are confident in the ability of our Houses to continue doing better than their peers, leveraging their innovativeness and creative audacity."
François-Henri Pinault, Chairman & CEO
• Sharp rise in total revenue from the Houses (up 36.8% on a comparable basis) on a high base of comparison. Healthy organic growth, well balanced across regions, nationalities and distribution channels
• Gucci: spectacular growth path continuing (up 48.7% on a comparable basis)
• Sustained sales increase at Yves Saint Laurent (up 19.6% on a comparable basis)
• Ongoing implementation of Bottega Veneta’s action plan (up 0.7% on a comparable basis)
• Very strong growth for the Other Houses (up 37.9% on a comparable basis), driven by exceptional momentum from Balenciaga. Solid trends at Alexander McQueen, Jewelry Houses, and in Watches
The Group delivered remarkable growth in consolidated revenue in the first three months of 2018, up by a sharp 27.1% as reported and 36.5% on a comparable basis to €3,107.8 million. Buoyed by favorable market conditions, this increase was well balanced across all distribution channels. Directly operated stores continued to see strong growth momentum (up 39.9% on a comparable basis), with double-digit growth in all geographic regions, particularly North America (up 54.3% on a comparable basis) and Asia Pacific (up 42.2% on a comparable basis). At the same time, online sales more than doubled during the quarter. Revenue from the wholesale network, where the collections of the Group’s Houses have been enthusiastically received, rose 30.5% on a comparable basis.
Gucci: further remarkable growth
Gucci had another excellent quarter across the board, posting revenue of €1,866.6 million, up 37.9% as reported and 48.7% on a comparable basis. Growth was evenly balanced. Sales in its directly operated stores, where all product categories and nationalities recorded double-digit growth, rose 50.4% on a comparable basis. Revenue posted sharp increases in all geographic regions, particularly North America (up 64.4%) and Asia Pacific (up 49.4%), despite the high base of comparison. The House’s online sales, driven by the U.S., reported triple-digit growth. The collections were also successful in Wholesale, with revenue up 43.6%.
Yves Saint Laurent: continued very strong growth momentum
With revenue of €408.2 million, up 12.0% as reported and 19.6% on a comparable basis, Yves Saint Laurent continued to grow at a fast pace. Alongside the permanent collections, the new lines were extremely well received. Sales in directly operated stores rose by 15.5%, propelled by surging revenue in North America (up 27.0%), Asia Pacific (up 23.6%) and Japan (up 22.9%). Once again, Wholesale posted strong growth (up 32.3%), driven by Western Europe.
The success of the Autumn/Winter 2018/2019 show, held on February 27 at the Trocadéro, was yet another testament to the Parisian House’s iconic status.
Bottega Veneta: continued redeployment
Bottega Veneta delivered revenue of €261.2 million, down 6.8% as reported and up 0.7% on a comparable basis. Sales in the directly operated store network rose by 1.7%, led by positive momentum in North America (up 10.6%), Asia Pacific (up 5.8%), and Japan (up 6.1%). New lines were well received, and Ready-to-Wear fared well. Wholesale was down slightly in the quarter.
The House is continuing to optimize its store network and strengthen its visibility through a communications strategy designed largely for digital media.
Other Houses: sustained growth
Revenue from the Other Houses amounted to €463.3 million, up 31.0% as reported and 37.9% on a comparable basis, with all geographic regions contributing to comparable growth.
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. Alexander McQueen also maintained highly positive trends across all regions in its directly operated store network.
Watches and Jewelry performed very well this quarter. The strengthened positioning of Boucheron, Pomellato and Qeelin are paying off, thanks to new collections, extended iconic lines and investments in communications and store networks. Watches also turned in a good performance this quarter.
Corporate and other
The “Corporate and other” segment delivered strong revenue growth this quarter, thanks to Kering Eyewear’s increased contribution. Kering Eyewear continued developing its organization, and the collections under the Cartier license, whose sales were consolidated for the first time, were very well received. With a solid framework and bolstered infrastructure, Kering Eyewear has successfully made a name for itself among retailers.
(1)PUMA, Volcom and Stella McCartney are presented as Discontinued operations for the first quarter of 2018 in accordance with IFRS 5.
A global Luxury group, Kering manages the development of a series of renowned Maisons in Fashion, Leather Goods, Jewelry and Watchmaking: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Christopher Kane, Tomas Maier, Boucheron, Pomellato, Dodo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. By placing creativity at the heart of its strategy, Kering enables its Maisons to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination.” In 2017, Kering had nearly 29,000 employees and pro forma revenue of €10.823 billion.
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