Kering group, owner of luxury stars Gucci and Yves Saint Laurent, posted skyrocketing sales growth in the fourth quarter across all regions, including Asia-Pacific and Japan, which witnessed double-digit revenue growth for the full-year 2017.
François-Henri Pinault, Chairman and CEO, stated: “Kering delivered a phenomenal year in 2017. We created over 3 billion euros in additional revenues in a single year, and generated more than a billion in additional EBIT. Gucci, whose performance was nothing short of spectacular, is amplifying its desirability across all markets. Saint Laurent is on a rapid growth track, while Bottega Veneta pursues its redeployment. Balenciaga is charting an impressive development trajectory, and our other Luxury brands are experiencing positive momentum. All of our Houses enjoy huge growth potential, rooted in their skills at reinventing codes, enhancing desirability through bold creative visions, and thereby creating value. We unequivocally demonstrated the strength of our business model.”
Overall revenues reached 4.26 billion euros ($5.25 billion) in the fourth quarter, up 27% year-on-year on a comparable basis, excluding acquisitions and currency swings.
That marked a slight slowdown from the 28.4% growth notched up in the previous three months but beat a 24.3% analyst poll by Inquiry Financial.
Net income surged 119.5% in 2017 to €1,785.6 million.
Luxury continues to dominate at Kering, whose stable also includes Bottega Veneta, Boucheron and Alexander McQueen, as well as Balenciaga, which saw the most growth last quarter.
Revenues in luxury goods rose 30.5% on a comparable basis year-on-year in the fourth quarter.
The French group continues to cash in on its overhaul of Italian fashion house Gucci and it is steadily revamping itself to focus solely on its luxury credentials.
With a focus of high-end brands, Kering said it plans to spin off 70% of its sportswear brand Puma to its own shareholders, which include the Pinault family, through its Artemis holding.
Kering will retain a stake of close to 16% in Puma with divestment now set for May 16.
SEE ALSO : Kering to sell off Puma shares
Looking forward, 2018 should be another solid year for Kering as the French group refocuses its business solely on luxury.
“In a global environment that remains uncertain, we will not relax our vigilance, but we are confident that the complementarity of our Houses, our geographic footprint, the diversity of our customer base and the strengths of an integrated Luxury Group will enable us, this year again, to do much better than our markets,” concluded Pinault