Kering revenues jump 10.5 percent in Q3

For the third quarter of 2016, Kering reported an acceleration in the group’s organic growth at 10.5 percent. Revenue of 3,185 million euros (3,467 million dollars) was up 10.5 percent on a comparable group structure and exchange rate basis and 10 percent as reported. The company witnessed double-digit comparable revenue growth across all geographic regions except Japan. Luxury segment revenues rose 11.3 percent on a comparable basis and 12 percent as reported, while sport & lifestyle segment revenues jumped 9.3 percent on a comparable basis and 6.5 percent as reported.

"Our excellent sales in the third quarter underscore the relevance of our strategy and the effectiveness of its execution. In a complex environment, we stepped up the pace of revenue growth and continued to gain market share.We have laid the foundations for steady, sustainable growth, and are highly confident about the full year," said François-Henri Pinault, Chairman and CEO of Kering.

Luxury brand sales accelerate in Q3

Luxury activities generated 2,115 million euros (2,302 million dollars) in revenue during the period, up 11.3 percent on a comparable basis and 12 percent as reported, which the company said was fastest quarterly growth rate in comparable sales in the past three years. Sales in directly operated stores enjoyed double-digit growth across all geographic regions excluding Japan, with strong growth of 24 percent in Asia-Pacific, 17 percent increase in North America and 12 percent in Western Europe.

Gucci outperformed the sector with a 17 percent increase in revenue on a comparable basis and 17.8 percent as reported. Sales were up across all product categories and regions, excluding Japan, where, according to Kering, market conditions were lacklustre for the sector as a whole. Gucci sales in directly operated stores rose by 19 percent based on comparable data. Sales from Gucci's e-commerce website increased by more than 50 percent during the quarter.

Bottega Veneta sales were impacted by slower tourism, particularly in the mature markets of Western Europe and Japan. Revenue was down 10.9 percent on a comparable basis and 9.3 percent as reported. While sales in directly operated stores were lower in the quarter, they delivered a slight improvement compared to the second-quarter trend. Yves Saint Laurent revenues however rose 33.9 percent on a comparable basis and 34 percent as reported.

Sales at the group’s other luxury brands were up 2.5 percent on a comparable basis, or up 2.4 percent as reported. Sales in directly operated stores rose steadily across all geographic regions excluding Japan, growing by 7 percent on a comparable basis. Sales by Couture & Leather Goods brands continued to climb, with Balenciaga, Stella McCartney and Alexander McQueen each posting growth of around 10 percent or more. Brioni built promising sales momentum in directly operated stores, particularly in North America, but was held back by its wholesale business. In the jewellery segment, Boucheron and Pomellato performed positively.

Puma sales increase 10.8 percent

Puma grew by 10.8 percent on a comparable basis and was up 8.3 percent as reported during the third quarter. The shoes category posted 17 percent growth, fuelled by the success of new models such as Ignite, Fierce and Fenty. Revenue from the apparel category was up 10 percent. With the exception of Japan, Puma achieved double-digit growth across all geographic regions, enjoying strong performances in Europe and the Americas, and sustained expansion in Mainland China. Volcom, however, Kering said, continued to be impacted by the challenges facing action sports retailers in the US.

Picture:Gucci