Kering’s revenue up 6.9% in FY ’16; Gucci bangs | Retail News France
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Kering’s revenue up 6.9% in FY ’16; Gucci bangs

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GucciKering, the French holding Group of labels like Alexander McQueen, Balenciaga, Brioni, Gucci, Puma, Volcom, Saint Laurent Paris, and other luxury, sport & lifestyle brands, has announced its financial results for the fiscal year 2016. The company’s revenue noted a jump of 6.9 per cent to Euro 12,385 million compared to previous year’s Euro 11,584 million.

In the mentioned period, recurring operating income reached a record high at Euro 1,886 million, up by 14.5 per cent from Euro 1,646.7 million. In terms of net income, Group share climbed 16.9 per cent to Euro 814 million.

Overall revenue generated by Luxury Activities totalled Euro 8,469 million, rose by 7.7 per cent as reported. The Y-o-Y revenue rise was driven by a 10.3 per cent increase in sales at directly operated stores. Online sales also advanced more than 20 per cent Y-o-Y. Altogether, sales generated at directly operated stores and online represented 72.3 per cent of the Luxury Activities’ total revenue in the reporting fiscal. Also, recurring operating income for Luxury Activities surged sharply by 13.3 per cent to Euro 1,936 million.

Also ReadKering to cut 50% of its greenhouse emissions by 2025

Gucci was one of the sector’s leading performers, with revenue up 12.3 per cent as reported to Euro 4,378.3 million. Recurring operating income for the fashion brand amounted to Euro 1,256.3 million climbing 224 per cent from prior year. Another major fashion label, Yves Saint Laurent also enjoyed a jump of 25.3 per cent in revenue to Euro 1,220.2 million. Its recurring operating income amounted to Euro 268.5 million in the reporting period. However, Bottega Veneta’s revenue was down 8.7 per cent to Euro 1,173.4 million. It also suffered a major loss in recurring operating income with 77.1 per cent decline to Euro 297.4 million.

In Sports and Lifestyle Activities (segment of Kering), Puma generated revenue of Euro 3,642.2 million, up by 7 per cent. The recurring operating income of the brand totalled Euro 126.6 million, witnessing a jump of 34.2 per cent.

“In a sector undergoing far-reaching transformation, our foresight and the quality of execution of our strategy enabled us to outperform our peers and deliver outstanding operating and financial performances. 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. In 2017, in an uncertain macroeconomic and geopolitical environment, we will keep concentrating on the organic growth of our Houses and on value creation, so as to intensify our current momentum,” said François-Henri Pinault, Chairman and Chief Executive Officer, Kering.

 

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