Kering Q1 revenue up 3.1 percent

Paris-based PPR, which will be known as Kering after approval at the company’s annual

general meeting on 18 June 2013, reported that its first-quarter 2013 comparable revenues went up 3.1 percent. Luxury division performance increased 6.4 percent on a comparable basis (up 8 percent in directly operated stores). Moving forward, company expects further headway in group transformation.

In the first quarter of 2013, Kering recorded 2.4 billion euros (3.1 billion dollars) in revenue on a comparable group structure and exchange rate basis and up 1.0 percent on first-quarter 2012 as reported. Revenue for the luxury division showed growth in all geographic areas. The sport & lifestyle division reported a drop in revenue of 2.5 percent on a comparable basis and 4.9 percent as reported.

François-Henri Pinault, Kering Chairman and Chief Executive Officer, commented, saying, “Kering’s sales activities since the beginning of 2013 have been powered by our luxury division, which has continued to make headways in all regions of the world. In fashion and leather goods, our robust performance above and beyond the very high base of comparison established last year confirms the tremendous appeal of our brands. In a jumpier environment, notably in Europe, sales of our sport & lifestyle division contracted somewhat in the first months of the year.”

According to the company, following the appointment of its new CEO, Björn Gulden, Puma will step up the pace of implementation of its transformation plan. In the quarter, Gucci posted a 4 percent increase in comparable revenue, while sales in directly operated stores were up 6 percent. Bottega Veneta delivered a solid performance, with comparable revenue up 9 percent. Strong growth in retail was partly offset by mixed performances in wholesale. Western Europe performed particularly well in directly operated stores, up over 20 percent. Trends were somewhat softer in North America as higher sales on the continent were offset by a slowdown in Hawaii, due to lower Japanese tourism. Bottega Veneta posted a solid 12 percent increase in sales in Japan. Asia Pacific saw a solid growth in revenue driven by increases of more than 20 percent in both Greater and Mainland China.

In the first quarter of 2013, Saint Laurent confirmed its strong momentum, with sales up 19percent. All regions apart from North America posted strong growth. In the first quarter, Kering's other luxury brands posted comparable revenue growth of 7 percent across most regions, driven by outstanding performances at Stella McCartney, Alexander McQueen and Boucheron. In the first quarter, Puma’s comparable sales were down 2.3 percent. Accessories delivered another strong performance, with a 12 percent increase in sales driven by the strong performance of Cobra Puma Golf.