YSL and Gucci help push Kering revenue up by 6.9%
Luxury group Kering posted consolidated revenue of €12,385m in 2016 up 6.9% (and 8.1% on a comparable basis) thanks to strong performances from flagship brands Gucci and Yves Saint Laurent.
Yves Saint Laurent, which now has ex-Versus design chief Anthony Vaccarello at its helm, and Gucci. which has been resurgent under creative director Alessandro Michele, posted "exceptional comparable growth" of 25.5% and 12.7% respectively, the group said. Sports brand Puma was also singled out having had a strong year with 10.4% comparable growth.
The growth represented the strongest the group has reported since 2012 and show a marked improvement in performance in the second half. Second-half growth came in at 10.5% on a comparable basis versus the first six months which saw a 5.5% comparable increase.
Profits too were up. Recurring operating income jumped 14.5%, reaching a record high of €1,886m while net income was up 16.9% to €814m.
Francois-Henri Pinault
Kering chairman and CEO François-Henri Pinault said the group's "foresight and the quality of execution of our strategy enabled us to outperform our peers" in what has been a tough time for the luxury sector as a whole.
"Rewarding our vision of luxury, grounded in powerful creative content and long-lasting stylistic codes, we continue to gain market share, as witnessed by the spectacular performances of Gucci and Yves Saint Laurent last year," said Pinault.
Looking forward to 2017 Pinault said the macroeconomic and geopolitical landscape remained uncertain. "We will keep concentrating on the organic growth of our Houses and on value creation, so as to intensify our current momentum," he said.
