Luxury brands lead growth at Kering
26/10/2016
François-Henri Pinault, chairman and CEO of Kering, said the results show the “relevance of our strategy” and praised the creativity of its brands. He expressed his confidence that the group had “laid the foundations for steady, sustainable growth”.
The group’s luxury activities led the way with strong growth for the Gucci (+17%) and Yves Saint Laurent (+33.9%) brands. Leathergoods continued to be an important segment for both brands.
Sales at luxury leathergoods brand Bottega Veneta were disappointing, however, especially in Western Europe and Japan. Revenue was down 10.9% in the quarter’ Kering attributed this to “slower tourism”. It said that the brand would be “pushing ahead with the implementation of its action plan”, which includes renewing its leathergoods offering.
In Kering’s sports and lifestyle division, the Puma brand achieved double-digit growth across all geographic regions, except Japan. This contributed to 10.8% growth in revenue. Sales of shoes rose 17% and revenue from apparel grew 10%.
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