Kering posts 4 percent rise in Q1 comparable revenues

Revenue for the first quarter of 2016 at Kering came in at 2,724 million euros (3,076 million dollars), up 4 percent on a comparable basis and 2.7 percent as reported. Sales at luxury activities increased 2.6 percent on a comparable basis and 2.8 percent as reported, lifted by retail in Western Europe, Japan and emerging countries. Sales of sport & lifestyle activities were up 7 percent on a comparable basis and 2.6 percent as reported.

Commenting on the first quarter development, François-Henri Pinault, Kering's Chairman and Chief Executive Officer, said, “Kering's solid first-quarter 2016 performance in a challenging market environment bears testimony to our focus on driving organic growth. 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.”

Luxury and sports & lifestyle maintain revenue growth

In the first quarter luxury activities sales advanced 3 percent in both directly operated stores and in the wholesale network. Gucci confirmed its growth momentum in the quarter driven by the success of its new collections. Sales increased 3.1 percent on a comparable basis and 2.9 percent as reported. Revenue generated in directly operated stores rose 3 percent, led by strong performances in Western Europe, while wholesale in positive for the second consecutive quarter.

Bottega Veneta's sales, however fell by 8.3 percent on a comparable basis and by 7.6 percent on the back of slowdown in tourism flows, particularly in Western Europe as well as in North America and Japan. Yves Saint Laurent, on the other hand posted 27 percent rise 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. Other luxury brands’ sales were down 3.3 percent overall on a comparable basis and 2.9 percent as reported.

Puma confirmed its solid growth trajectory in all product categories including footwear, apparel and accessories in all regions, particularly Asia/Pacific and Western Europe under the sports & lifestyle category.

New appointments and other highlights of Q1

Kering announced the appointment of Béatrice Lazat as Group Human Resources Director on February 29, 2016 and of Jean-Philippe Bailly as Chief Operating Officer on March 18, 2016. On March 23, 2016, Brioni and Kering announced the appointment of Justin O’Shea as new Creative Director of Brioni and on April 1, 2016, Yves Saint Laurent announced the departure of Hedi Slimane as Creative and Image Director at the end of a four-year mission and appointment of Anthony Vaccarello as the new Creative Director of the brand.

On March 16, 2016, Volcom announced that it had sold the Electric brand via a management buy-out (MBO) to a group led by Eric Crane, Electric's Chief Executive Officer.