Global luxury group, Kering reported a 31.2% rise in consolidated revenue (28.6% on a comparable basis) for the first three months of 2017, with the luxury categories registering a 34% rise (31.6% on a comparable basis) led by iconic brand Gucci. The Watches & Jewellery Houses under the group reported a 13.1% on a comparable basis, the Group announced.

For the first quarter, actual revenue stood at €3,573.5 million with the major sequential increase driven by double-digit growth across all activities and all geographic regions excluding Japan, Kering reported.

Revenue generated by Luxury activities totalled €2,417.1 million in the first quarter of 2017, with growth in the Group’s directly operated store network particularly high, at 36.6% on a comparable basis.

This was driven by remarkable performances in Western Europe and the Asia Pacific region, which reported retail sales increases on a comparable basis of 49.9% and 46.7%, respectively, Kering said.

The Company added that growth in retail sales was also significant in North America and the Rest of the world, up 29.7% and 28.1%, respectively, on a comparable basis and online sales leapt 60.1% on a comparable basis, underscoring the success of the digital strategies implemented by Kering’s Luxury Houses. Wholesale revenue rose 20.2% on a comparable basis.

Revenue from Watches & Jewellery Houses showed a growth of 13.1% 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, including Girard-Perregaux and Ulysse Nardin, also fared well in the first quarter.

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 favorable 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.” 

Kering also announced that the renovation of Boucheron’s flagship store on Place Vendôme in Paris would begin on March 30, 2017. The project aims to showcase the architecture and original volumes of the building, as Boucheron's 160th anniversary draws near.

 The Group also launched its 2025 sustainability strategy Care for the Environment, Collaboration for Social Welfare and Innovation & Creation that can “transform conventional processes in luxury, and influence the industry”.

Pic Cap:

A Boucheron Store

Courtesy: Kering