KERING SEALS EXCELLENT 2016
FULL STEAM AHEAD DRIVEN BY GUCCI AND SAINT LAURENT
Kering Group, the French conglomerate whose portfolio includes Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Boucheron and Puma, logged in excellent performances in 2016, spurred by a sharp acceleration in growth in the second half and a record-high recurring operating income.
More specifically, Kering posted sales of 12.38 billion euros in 2016, up 8.1 percent on a comparable basis, the group’s strongest annual increase since 2012. Net income stood at 813.5 million euros.
Luxury activities jumped 7.7 percent while its Sport & Lifestyle sector gained 5.5 percent. Online sales for its luxury division were up 22 percent.
The results were driven by the exceptional momentum of Saint Laurent and Gucci which posted comparable growth of 25.5 percent and 12.7 percent, respectively. Puma, under the creative stewardship of Rihanna, ballooned 10.4 percent.
“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 continues to gain market share, as witnessed by the spectacular performances of Gucci and 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 ceo of Kering.
The group is also focusing on Millennials, which are crucial to future growth and already represent a hefty share of Gucci and Saint Laurent sales.