Finance
martedì 13 febbraio 2018

Historic performances in 2017 - record-high recurring operating income in 2017

Consolidated revenue: €15,478 million,

 

up 25.0% as reported, 27.2% on a comparable basis

 

Luxury activities: up 27.5% as reported, 29.9% on a comparable basis

 

Sport & Lifestyle activities: up 12.8% as reported, 14.7% on a comparable basis

 

Recurring operating income: €2,948 million, up 56.3%

 

Very sharp rise in operating margin to 19.0%

 

Free cash flow from operations virtually doubled during the year to €2,318 million

 

Net income, Group share of €1,786 million, up 119.5%

 

Recommended dividend of €6.00 per share, a 30% year-on-year increase

 

Payment of a stock dividend in the form of Puma SE shares

 

François-Henri Pinault, Chairman and CEO, stated: “Kering delivered a phenomenal year in 2017. We created over 3 billion euros in additional revenues in a single year, and generated more than a billion in additional EBIT. Gucci, whose performance was nothing short of spectacular, is amplifying its desirability across all markets. Saint Laurent is on a rapid growth track, while Bottega Veneta pursues its redeployment. Balenciaga is charting an impressive development trajectory, and our other Luxury brands are experiencing positive momentum. All of our Houses enjoy huge growth potential, rooted in their skills at reinventing codes, enhancing desirability through bold creative visions, and thereby creating value. We unequivocally demonstrated the strength of our business model. In a global environment that remains uncertain, we will not relax our vigilance, but we are confident that the complementarity of our Houses, our geographic footprint, the diversity of our customer base and the strengths of an integrated Luxury Group will enable us, this year again, to do much better than our markets.”

 

Mr. Pinault added: “Earlier this year, we announced the completion of our transformation into a Luxury pure player. Pending their approval, the distribution to our shareholders of the bulk of Kering’s stake in Puma will allow them to directly benefit from the considerable potential of this brand, which is in the early days of its growth story.”

 

Sharp market outperformance for Luxury activities

 

Revenue for the Luxury activities topped the €10 billion mark in 2017, up 29.9% year on year based on comparable data.

 

Gucci and Yves Saint Laurent delivered spectacular comparable growth (up 44.6% and 25.3%, respectively).

 

Other Luxury brands saw an acceleration in revenue growth (up 14.1% on a comparable basis), especially Balenciaga, which delivered the fastest growth rate of all Group brands in the second half.

 

Strong growth at Puma

 

Puma’s revenue topped €4 billion for the first time, a rise of 15.8% on a comparable basis.

 

Recurring operating income for the brand jumped 92.7% in 2017.

 

DOWNLOAD THE FULL PRESS RELEASE BELOW

 

PRESENTATION

 

A live webcast of the presentation of the 2017 Annual Results will be available on Tuesday, February 13, 2018 at 9:00am (CET) on www.kering.com. The presentation slides and 2017 financial report (pdf) will be made available beforehand.

 

A replay will be available online later in the day.

 

You will also be able to listen to the presentation live or on replay by dialling:

 

French:

 

Live presentation: +33 (0)1 72 72 74 03

 

Live passcode: 50394660#

 

Replay: +33 (0)1 70 71 01 60

 

Replay passcode: 418726331#

 

English:

 

Live presentation: +44 (0)207 194 3759

 

Live passcode: 39613580#

 

Replay: +44 (0)203 364 5147

 

Replay passcode: 418726334#

 

About Kering

 

A global Luxury group, Kering develops an ensemble of luxury houses in fashion, leather goods, jewellery and watches: Gucci, Bottega Veneta, Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ, Stella McCartney, Tomas Maier, Boucheron, Dodo, Girard-Perregaux, Pomellato, Qeelin and Ulysse Nardin. Kering is also developing the Sport & Lifestyle brands Puma, Volcom and Cobra. By ‘empowering imagination’, Kering encourages its brands to reach their potential, in the most sustainable manner.

 

The Group generated revenue of €15.5 billion in 2017 and had more than 44,000 employees at year end. The Kering share is listed on Euronext Paris (FR 0000121485, KER.PA, KER.FP).

 

Contacts

 

Press

 

Emilie Gargatte +33 (0)1 45 64 61 20 emilie.gargatte@kering.com

 

Astrid Wernert +33 (0)1 45 64 61 57 astrid.wernert@kering.com

 

Analysts/investors

 

Claire Roblet +33 (0)1 45 64 61 49 claire.roblet@kering.com

 

Laura Levy +33 (0)1 45 64 60 45 laura.levy@kering.com

 

www.kering.com

 

Twitter: @KeringGroup

 

LinkedIn: Kering

 

Instagram: @kering_official

 

YouTube: KeringGroup

 

Download the press release (.pdf 670.35 KB)