Kering has announced that revenue at the company has increased by 8.1% in 2016. The increase is said to have been because of luxury brands Saint Laurent and Gucci.
According to an article on Reuters, Kering has announced that revenue at the French luxury and sports company have increased by 8.1%. The increase in revenue is said to have been because of increase in sales at Saint Laurent and Gucci. The two brands now give Kering 50% of its revenue.
Kering, who also own Stella McCartney and Puma, had good sales despite a decline in the luxury market. The company said in 2017 there would be an increase in declining sales at Bottega Veneta.
The increase in revenue also provided further evidence of increasing sales in the luxury market. LVMH recently announced record revenue and profits for 2016 and Hermès said the company was confident about sales in 2017.
Chairman and CEO Francois-Henri Pinault was also quite confident about 2017, citing an increase in de,and in China and the United States. Operation income increased by 14.5% to €1.886 billion ($2 billion) while company revenue increased by 8.1% to €12.385 billion. This is compared to analysts expectations of €1.83 billion of revenue and €12.28 billion of sales, according to a Reuters consensus conducted with Inquiry Financial.
The company had an increase in revenue despite Gucci’s decision to stop discounting. Saint Laurent, which gives Kering over 10% of its luxury sales, continued to have increasing sales after Anthony Vaccarello became creative director of the brand last year. The brand’s sales increased by 20.5% in the fourth fiscal quarter 2016 while operating income increased to over 20% for the year.
Sales at Bottega Veneta, however, declined by 8.6% in Q4. Sales are said to have declined because of a decline in tourist spending.
Sales at Puma increased and the company said it was confident about sales in 2017. When asked if he had any plans to sell the brand, Pinault said his priority was to improve profitability at Puma.
So, what do you think? Will profits and sales continue to increase at Kering? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on a Facebook, Instagram, and Snapchat.
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