Global luxury group Kering announced on 25 April 2017 that its first quarter 2017 revenue reached €3,573.5 million with a 31.2-percent rise in consolidated revenue while the luxury categories registered a 34-percent rise led by Gucci. The watches and jewellery houses under the group reported a 13.1-percent rise on a comparable basis.
François-Henri Pinault, chairman and chief executive officer, said: “Kering achieved a record performance in the first three months of the year, posting a sharp acceleration in sales growth. Benefitting from somewhat more favourable market conditions, our strong delivery primarily stems from meticulous execution of our strategy and the creative audacity of our houses. In a climate of persistent geopolitical and macroeconomic uncertainties, our first quarter puts us in a particularly good position for the balance of the year. The group will continue to focus on organic growth and market share gains, on value creation and ongoing operational and financial discipline.”
According to the group, revenue generated by luxury activities totalled €2,417.1 million in the first quarter of 2017, up by a sharp 34 percent as reported and 31.6 percent on a comparable basis, against a favourable base of comparison.
Sales growth in the group’s directly operated store network was particularly high, at 36.6 percent on a comparable basis, driven by remarkable performances in Western Europe and the Asia Pacific region, which reported retail sales increases on a comparable basis of 49.9 percent and 46.7 percent, respectively. Growth in retail sales was also significant in North America and the rest of the world, up 29.7 percent and 28.1 percent, respectively, on a comparable basis. Online sales leapt 60.1 percent on a comparable basis, underscoring the success of the digital strategies implemented by Kering’s luxury houses. Wholesale revenue climbed 20.2% on a comparable basis.
Revenue from watches and jewellery houses climbed 13.1 percent on a comparable basis, with good performances at Boucheron and Pomellato, demonstrating their innovative flair through new collections, reworked iconic lines and 360-degree marketing campaigns. The group's watch manufacturers also fared well in the first quarter. Girard-Perregaux and Ulysse Nardin joined the exhibitors at the Salon International de la Haute Horlogerie (SIHH) in January 2017, where they successfully unveiled several new models.
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