2016 First Quarter revenue - marketscreener.com · • Innovative marketing and communications ‒...

2016

First Quarter

revenue

21 April 2016 2017 First Quarter revenue

25 April 2017

25.04.2017 2

DISCLAIMER

This presentation does not constitute an offer of securities for sale in the United States of America or any other jurisdiction.

Certain information contained in this document may include projections and forecasts. They express objectives based on current assessments and

estimates of the Group’s executive management which are subject to numerous factors, risks and uncertainties. Consequently, reported figures

and assessments may differ significantly from projected figures. The following factors among others set out in the Reference Document (Document

de Référence) filed with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) on March 30th, 2017 which is available

on Kering’s website at www.kering.com may cause actual figures to differ materially from projected figures: any unfavourable development

affecting consumer spending in the activities of the Group in France and abroad, notably for products and services sold by the Luxury Goods and

Sport & Lifestyle brands, the events, crises, fears, and resulting costs of complying with environmental, health and safety regulations and all other

regulations with which Group companies are required to comply; the competitive situation on each of our markets; exchange rate and other risks

related to international activities; risks arising from current or future litigation. Kering gives no commitment to updating and/or revising and/or

commenting any projections and forecasts, or their impact on the results and perspectives of the Group, which may be contained in this

presentation.

The information contained in this document has been selected by the Group’s executive management to present Kering’s 1st quarter 2017 revenue.

This document has not been independently verified. Kering makes no representation or undertaking as to the accuracy or completeness of such

information. None of the Kering or any of its affiliates representatives shall bear any liability (in negligence or otherwise) for any loss arising from

any use of this presentation or its contents or otherwise arising in connection with this presentation.

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INFORMATION PROVIDED IN THIS PRESENTATION. INFORMATION IN THIS PRESENTATION, INCLUDING FORECAST FINANCIAL

INFORMATION, SHOULD NOT BE CONSIDERED AS ADVICE OR A RECOMMENDATION TO INVESTORS OR POTENTIAL INVESTORS IN

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READERS ARE ADVISED TO REVIEW THE COMPANY'S REFERENCE DOCUMENT AND THE COMPANY'S APPLICABLE AMF FILINGS BEFORE

MAKING ANY INVESTMENT OR OTHER DECISION.

4

Q1 2017 REVENUE: RECORD-BREAKING GROWTH

* : at constant scope and exchange rates, Kering Eyewear included.

GROUP

25.04.2017

3,574 M€

+31.2% reported

+28.6% comparable*

Western Europe 32%

(+34%)

North America 21%

(+25%)

Asia Pacific 29%

(+42%)

RoW 10%

(+19%)

Japan 8%

(+1%)

LUXURY

2,417 M€

+34.0% reported

+31.6% comparable*

SPORT & LIFESTYLE

1,064 M€

+16.5% reported

+14.0% comparable*

CORPORATE & OTHERS

92 M€including Kering Eyewear

contribution

SHARP SEQUENTIAL

ACCELERATION

Record quarter on an easy

comp base (Group comparable revenue

growth)

MAJOR IMPROVEMENT

ACROSS ALL

GEOGRAPHIES

Breakdown by region(% of Q1 Group revenue and

comparable growth)

-5%

5%

15%

25%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

5

LUXURY ACTIVITIES

FX impact

+37%

Q1 2016

+2%1,804

Wholesale Royalties

and others

Q1 2017

2,417+9%+20%

Retail

Western Europe

32%

North America

18%Japan

10%

Asia Pacific

33%

RoW

7%

REVENUE BREAKDOWN BY REGION

(on tota l Q1 revenue, in %)

REVENUE CHANGE BY REGION AND CHANNEL( in €m, and comparable growth in %)

Q1 2017 revenue: 2,417 M€+34.0% reported; +31.6% comparable

25.04.2017

• Accelerat ion across al l regions and channels

• Retai l up strong double dig it (+37%)

‒ Western Europe and APAC leading with high growth rates, up 50% and 47%

respectively

‒ North America posting a very strong performance, Japan improving modestly

‒ e-commerce revenue up 60%

• Wholesale up 20%, with some catch-up in del iver ies at Gucci

and YSL

• Focus on organic growth and market share gains paying off ,

dr iven by:

‒ brand attractiveness and customer engagement

‒ healthy geographic footprint and ability to take advantage of rebound in

tourism and local consumption

• Number of DOS at end of March: 1,316

‒ 11 net openings during the quarter

INDUSTRY-LEADING PERFORMANCE STRONG EXECUTION LEVERAGING FAVORABLE

MARKET CONDITIONS

6

GUCCI

Retail (84% of sales): +51%

Q1 2017

1,354-1%

Royalties

and others

Wholesale

+34%+63%

+11%+46%

Western

Europe

Japan

+66%

894

+37%

North

America

Asia

Pacific

Q1 2016 RoW


Western Europe

28%

North America

19%

Japan

9%

Asia Pacific

38%

RoW

6%




25.04.2017

EXCEPTIONAL PERFORMANCE ACROSS THE BOARD

• Retai l up 51% dr iven by LfL and ful l -price sales

‒ all categories up strong double digit

‒ outstanding growth in Western Europe driven by both locals and tourists; very

strong momentum in all APAC countries, starting with Mainland China;

confirmed strength in North America; Japan back to double-digit growth thanks

to dedicated, efficient initiatives

‒ online sales up 86%, driven by North America and Western Europe

• Wholesale: unfading enthusiast ic response to the col lect ions

NURTURING GROWTH

• Effective client engagement

‒ Growth in all clientele segments (new, retained, regained)

• Expansion of new store concept and retail excellence program

• Innovative marketing and communications

‒ first unified Fashion Show, narrative ad campaigns, cross-culture

collaborations

• Number of DOS at end of March: 517

7

BOTTEGA VENETA

JapanNorth

America

-8% -6%

Asia

Pacific

Western

Europe

Q1 2017Royalties

and others

-22%

Wholesale

280

-3%

RoW


+6% +11%

+14%268

Q1 2016




Q1 2017 revenue: 280 M€+4.7% reported; +2.3% comparable

Western Europe

24%

North America

11%

Japan

16%

Asia Pacific

43%

RoW

6%

25.04.2017

IMPROVING TRENDS

• Retai l back to posit ive performance (+4%), dr iven by Western

Europe and APAC

‒ Western Europe: rebound driven by France and the UK, with growth evenly

balanced between locals and tourists; APAC turns positive, strong momentum

in Mainland China and Macau, some improvement in HK

‒ US and Japan still challenging but trend gradually more favorable

• Wholesale decrease moderating

‒ strategy of containing markdowns and reinforcing exclusive brand positioning

under way

ACTION PLANS RAMPING UP

• Local clientele up in all regions excl. Japan, with sales growth

driven by both new and existing clients

• Appetite for novelties and product innovation confirmed

‒ improving sell-through on new models and seasonal items from the Cruise

Collection

• Strong positive trends in Shoes, especially Women

• Store layout adaptation ongoing


8

SAINT LAURENT

269

Royalties

and others

Q1 2017

364

+48%

Japan

-4%+18%

+35%

RoWNorth

America

Asia

Pacific

+16%


WholesaleQ1 2016 Western

Europe

+46%

+48%





Western Europe

37%

North America

21%

Japan

8%

Asia Pacific

27%

RoW

7%

25.04.2017

ANOTHER STRONG QUARTER

• Well-balanced growth by distribution channels

‒ double-digit retail increases in all regions excl. Japan (challenging comp

base due to Omotesando flagship opening)

‒ wholesale strong momentum on deliveries of Anthony Vaccarello’s first

collection

• Sustained e-commerce performance driven by the largest markets,

i.e. Western Europe and North America

SUCCESSFUL NEW DEVELOPMENTS

• Great reception for Summer 17 collection, Anthony Vaccarello’s

first, available in stores since January; new best-sellers, notably

in Women’s Shoes and Ready-to-Wear

• Strong appreciation of the Winter Fashion Show on February 28,

confirming success of creative transition


9

OTHER LUXURY BRANDS

372

Wholesale

+8%

Retail

+18%

Q1 2016

418

Q1 2017

-7%

Royalties and others





Western Europe

45%

North America

17%

Japan

10%

Asia Pacific

19%

RoW

9%

25.04.2017

… JEWELLERY & WATCHES AS WELL (+13%)

• Good performance of Boucheron and Pomellato

‒ solid trends supported by new collections, extension of iconic lines,

impactful communications campaigns

• Improving trends in Watches

‒ enhanced visibility of Girard-Perregaux and Ulysse Nardin at SIHH

‒ launch of new collections and models: Laureato (GP), Marine Tourbillon

Grand Feu and Regatta Chronograph (UN)


COUTURE & LEATHER GOODS UP DOUBLE DIGIT (+11%) …

• Growth across all distribution channels

• Strong retail performance

‒ led by Western Europe and APAC

‒ momentum accelerating sharply at Balenciaga, up in all regions and product

categories, reflecting strong appreciation of Demna Gvasalia’s collections

‒ Brioni back to positive trends

10

SPORT & LIFESTYLE ACTIVITIES

+13%+21%

+15%

-6%+16%

Q1 2016 Japan Asia PacificNorth AmericaWestern

Europe

Q1 2017

1,064

RoW

913





Western Europe

30%

North America

27%

Japan

7%

Asia Pacific

17%

RoW

19%

25.04.2017

STRONG START TO THE YEAR AT PUMA

• First quarter ever above 1bn€ revenue mark, a 15%

comparable revenue increase, dr iven by:

‒ acceleration in Footwear at +25%, Apparel +10%, Accessories +4%

‒ double-digit growth in all regions except Japan, led by APAC, North America

and Western Europe

‒ strong performance in both wholesale and retail

• Volcom still impacted by difficulties with action sports retailers in

the US; good performance in own retail channel (+12%)

PUMA BRAND HEAT COMING BACK

• High final demand, improving sell-through at retailers leading to

anticipation of some deliveries from Q2 to Q1

• Innovative product line-up and confirmed success of Women’s

initiatives together with other franchises (Fierce, Ignite, Fenty,

Puma classics)

• Strong reception of new initiatives: Ignite Limitless, Basket Heart

• New sponsoring announcements strengthening the football roots:

Olympique de Marseille, Borussia Mönchengladbach

11

CONCLUSION

25.04.2017

An outstanding performance in the quarter, thanks to:

‒ The right long-term strategy and determined day-to-day execution

‒ A favorable backdrop for the industry, while geopolitical and macroeconomic

uncertainties remain

We will keep concentrating on organic growth, value creation and financial discipline

19.02.17 14

Gucci • Bottega Veneta • Saint Laurent

Alexander McQueen • Balenciaga • Brioni • Christopher Kane • McQ • Stella McCartney • Tomas Maier

Boucheron • Dodo • Girard-Perregaux • Pomellato • Qeelin • Ulysse Nardin

Puma • Cobra • Volcom

2016 First Quarter revenue - marketscreener.com · • Innovative marketing and communications ‒...

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