Kering: Third-quarter 2013 revenue

                      Kering: Third-quarter 2013 revenue

Revenue up 3% on a comparable basis
Balanced growth in Luxury: revenue up 6% on a comparable basis

Kering posted third-quarter 2013 revenue of  €2.5 billion, up 3.4% versus  the 
same 2012  period based  on  comparable Group  structure and  exchange  rates. 
Kering's revenue for the first  nine months of the year  was up 3.9% based  on 
comparable Group structure and exchange rates.

The Luxury Division achieved further  growth across all regions, with  revenue 
up 5.6% in the quarter and up 7.1% in  the first nine months of the year on  a 
comparable basis.  Fashion and  Leather  Goods sales  advanced 6%  during  the 
quarter. The Sport  & Lifestyle Division's  revenue contracted slightly  (down 
0.9% on a comparable basis).

François-Henri Pinault,  Chairman  and  Chief  Executive  Officer,  commented: 
"Kering posted another quarter of  growth, propelled by the Luxury  Division's 
strong performance,  notably  in  our  own  store  network.  This  performance 
underscores the strategic rationale of our multi-brand business model and  the 
success of our  diversification strategy  in terms  of geographical  coverage, 
distribution channels and product categories. Revenue generated by the Sport &
Lifestyle Division  contracted, in  line with  our forecast,  impacted by  the 
unfavorable consumer  spending environment.  A new  management team  has  been 
appointed to  radically  transform  Puma  and  restore  the  brand's  powerful 
position. With very healthy gross margins  in our luxury brands and  continued 
tight  control  of  our  operating  expenses,  we  remain  confident  in   our 
performances for the year as a whole."





                                       Comparable     9 months      Comparable
                              Q3 2013   change   to Sept. 30, 2013   change
(in € million)                            ^(1)                         ^(1)
Luxury Division                  1,617      +5.6%             4,696      +7.1%
Sport & Lifestyle Division         896      -0.9%             2,483      -2.4%
Eliminations and other              10         nm                23         nm
Kering - Continuing operations   2,523      +3.4%             7,201      +3.9%


^(1)Constant Group structure and exchange rates.











Luxury Division

The Luxury Division  reported a solid  third-quarter performance with  revenue 
growing by  6%  on a  comparable  basis, fuelled  by  sales generated  in  its 
directly operated stores, up 8%.
The Division's growth is  evenly balanced between mature  markets (up 5%)  and 
emerging markets (up 7%). All key geographic areas recorded solid growth, with
a particularly  strong  showing  in  Japan, where  revenue  jumped  14%  on  a 
comparable basis.
The Luxury Division's sales growth was  fuelled by the buoyant performance  of 
Fashion and Leather Goods, which advanced 6% during the period.
As of September 30, 2013, the  store network of the Luxury Division  comprised 
1,116 units, including 39 net new  additions during the quarter and a  further 
53 directly operated stores following the integration of the Pomellato group.

Gucci
Gucci's third-quarter sales were up 0.6% on a comparable basis, with revenue
growth of 4% in directly operated stores, while wholesale sales contracted due
to Gucci's increasingly selective distribution policy.
By region, Gucci recorded mixed third-quarter sales. In Japan and the United
States (excluding Hawaii), revenue grew steadily, demonstrating the
effectiveness of the strategy of exclusivity implemented in these countries
over the past several years, though the adoption of this strategy in the
Asia-Pacific region adversely affected third-quarter store traffic. In Western
Europe, revenue was impacted by Gucci's performance in Italy, its main market
in the region.
The Leather Goods and Shoes product lines posted very solid results in
directly operated stores while sales of handbags were particularly robust,
driven by the success of new "no logo" leather lines, Bamboo Shopper and Lady
Lock.

Bottega Veneta
Bottega Veneta posted very solid growth in the third quarter of 2013 with
revenue jumping 16% on a comparable basis, driven by very strong performances
in its directly-operated stores (up 18%).
All geographic areas contributed evenly to this performance, with growth of
13% in mature markets and 21% in emerging markets.
Leather Goods continued to post very solid performances during the quarter (up
18%), while sales in other product categories, notably its Men's collection,
rose sharply, confirming Bottega Veneta's ability to broaden its offering to
attract new customers.

Saint Laurent
Saint Laurent recorded a very strong third-quarter performance, reporting
growth of 12% on a comparable basis, bolstered by sales growth of 15% in
directly operated stores. The positive momentum seen in its stores since the
beginning of the year bears witness to the successful roll-out of the brand's
new store concept and the particular focus on this distribution channel.
Sustained growth was reported across all geographic areas during the quarter
with a particularly robust performance in Japan (up 41%), while sales were
solid in Western Europe (up 12%) and on a continued upward trend in North
America (up 12%).
Men's and Women's ready-to-wear again delivered excellent performances (up
41%) and recently launched shoe and handbag lines have proved highly
successful.

Other luxury brands
Kering's other luxury brands posted growth of 9% on a comparable basis in the
third quarter of 2013, driven by the success of the designer brands, including
very strong performances by Stella McCartney and Alexander McQueen. Balenciaga
saw the pace of its revenue growth accelerate compared with the previous
quarter, while Brioni continues to develop satisfactorily.
Jewellery and Timepieces recorded more mixed third-quarter sales performances,
with Boucheron posting solid growth figures.

Sport & Lifestyle Division

The Sport & Lifestyle Division's sales performance was generally in line  with 
the trends observed in the first  six months of 2013. Revenue contracted  0.9% 
on a  comparable  basis,  affected  by  the  performance  of  Puma's  Footwear 
category.
Volcom's sales advanced 2% during the quarter, partly fuelled by solid revenue
from its new footwear line.

Puma
Puma sales for the third quarter of 2013 were down 0.8% on a comparable basis.
The Puma brand recorded improved retail sales (up 6%), driven by all of its
directly operated distribution channels (stores, outlets, online sales).
Sales developed positively in North America, but remained under pressure in
Western Europe.
Sales of Apparel and Accessories grew over the quarter, while the Footwear
category continued to be affected by challenging conditions in its main
markets.
In the third quarter, Puma pressed ahead with the implementation of the
brand's Transformation Programme, closing more underperforming stores,
appointing a new creative director, introducing a new geographic organisation,
reducing the number of product references and optimising the product
development process.

Significant events since July 1, 2013

  oKering announced on July 5, 2013 that it had completed the acquisition of
    a majority stake in the Pomellato group, in accordance with the terms
    announced on April 24, 2013, after having received clearance from the
    antitrust authorities. Pomellato has been consolidated in Kering's
    financial statements since July 1, 2013.
  oOn July 8, 2013, Kering announced that it had issued a €500 million, 2.50%
    fixed-rate bond maturing in seven years.
  oOn September 6, 2013, Kering announced that it would become a minority
    shareholder in the New York-based Altuzarra fashion brand.
  oOn September 30, 2013, Kering issued a €500 million, 1.875% fixed rate
    bond maturing in five years, listed on the Luxembourg stock exchange.
  oKering has pursued the process of disposal of La Redoute, and is in talks
    with several potential buyers.

AUDIOCAST

Kering will hold  an audiocast for  analysts and investors  at 6.00pm (CET)  / 
5.00pm (UK) / 12.00pm (US, East Coast) on Thursday, October 24, 2013.

Available on www.kering.com (Finance section)

The audiocast  will also  be available  by  phone, using  one of  the  dial-in 
numbers below:

France + 33 (0)1 76 77 22 29
UK +44 (0)20 3427 1911
USA +1(646) 254 3363

Access code: 9572530

A replay  of  the  audiocast  will be  available  on  www.kering.com  (Finance 
section).

PRESENTATION

The slides (PDF) will be available ahead of the audiocast at www.kering.com

About Kering
A world leader  in apparel  and accessories,  Kering develops  an ensemble  of 
powerful Luxury and  Sport &  Lifestyle brands: Gucci,  Bottega Veneta,  Saint 
Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, McQ,  Stella 
McCartney,  Sergio  Rossi,  Boucheron,  Dodo,  Girard-Perregaux,  JeanRichard, 
Pomellato, Qeelin, Puma, Volcom, Cobra,  Electric and Tretorn. By  'empowering 
imagination' in the fullest sense, Kering encourages its brands to reach their
potential, in the most sustainable manner.
Present in  more than  120 countries,  the Group  generated revenues  of  €9.7 
billion in 2012 and had 33,000  employees at year end. The Kering  (previously 
PPR) share is listed on Euronext Paris (FR 0000121485, KER.PA, KER.FP).

Contacts

Press
Paul    Michon     +33     (0)1    45     64     63 
48 paul.michon@kering.com
Hélène      Saint-Raymond      +33      (0)1      45      64      61 
20 helene.saint-raymond@kering.com

Analysts/investors
Claire Roblet   + 33  (0)1 45  64 61  49 
claire.roblet@kering.com
Edouard  Crowley  +  33  (0)1  45  64  63   28 
edouard.crowley@kering.com

Website: www.kering.com

Appendix: Third-quarter 2013 revenue

                                                         Reported Comparable
     (in € million)                 Q3 2013  Q3 2012 ^(1)  change  change ^(2)
                         
Luxury Division                     1,617.1      1,592.9    +1.5%       +5.6%
Gucci                                 864.8        914.6    -5.4%       +0.6%
Bottega Veneta                        259.3        241.6    +7.3%      +15,8%
Saint Laurent                         139.3        130.0    +7.2%      +12.0%
Other brands                          353.7        306.7   +15.3%       +9.4%
Sport & Lifestyle                     896.2        969.7    -7.6%       -0.9%
Division
Puma                                  824.8        892.2    -7.6%       -0.8%
Other brands                           71.4         77.5    -7.9%       -2.3%
Eliminations and other                  9.7         -2.2                   
KERING - Continuing                 2,523.0      2,560.4    -1.5%       +3.4%
activities
                                                              
^(1) Figures have been restated of Redcats                       
and Group Fnac (IFRS 5).
^(2) Comparable scope and                                       
exchange rates.
                                                             

                                   9 months    9 months
                                 ended Sept. ended Sept.
                                      30,         30,     Reported Comparable
     (in € million)                  2013      2012 ^(1)   change  change ^(2)
                         
Luxury Division                      4,695.5     4,517.4    +3.9%       +7.1%
Gucci                                2,619.6     2,642.4    -0.9%       +2.9%
Bottega Veneta                         724.9       671.1    +8.0%      +13.9%
Saint Laurent                          394.6       353.5   +11.6%      +14.8%
Other brands                           956.4       850.4   +12.5%      +11.3%
Sport & Lifestyle                    2,483.1     2,663.7    -6.8%       -2.4%
Division
Puma                                 2,298.7     2,466.0    -6.8%       -2.3%
Other brands                           184.4       197.7    -6.7%       -3.5%
Eliminations and other                  22.8        -7.0                   
KERING - Continuing                  7,201.4     7,174.1    +0.4%       +3.9%
activities
                                                              
^(1) Figures have been restated of Redcats                       
and Group Fnac (IFRS 5).
^(2) Comparable scope and                                       
exchange rates.
                                                             

 

                                                                  Comparable
                                              H1 2012   Reported   change   
      (in € million)               H1 2013      ^(1)      change     ^(2)
                                                                        
Luxury Division                     3,078.4     2,924.5    +5.3%      +7.9% 
Gucci                               1,754.8     1,727.8    +1.6%      +4.1% 
Bottega Veneta                        465.6       429.5    +8.4%     +12.9% 
Saint Laurent                         255.3       223.5   +14.2%     +16.5% 
Other brands                          602.7       543.7   +10.9%     +12.5% 
Pôle Sport & Lifestyle              1,586.9     1,694.0    -6.3%      -3.2% 
Puma                                1,473.9     1,573.8    -6.3%      -3.1% 
Other brands                          113.0       120.2    -6.0%      -4.2% 
Eliminations and other                 13.1        -4.8                   
KERING - Continuing                 4,678.4     4,613.7    +1.4%      +4.2% 
activities
                                                                       
^(1) Figures have been restated of Redcats and Group                        
Fnac (IFRS 5).
^(2) Comparable scope and exchange rates.

 

                                                                  Comparable
                                              Q2 2012   Reported   change   
      (in € million)               Q2 2013      ^(1)      change     ^(2)
                                                                           
Luxury Division                     1,555.0     1,466.6    +6.0%      +9.4% 
Gucci                                 888.9       879.9    +1.0%      +4.1% 
Bottega Veneta                        236.6       211.5   +11.9%     +17.2% 
Saint Laurent                         128.1       114.7   +11.7%     +14.4% 
Other brands                          301.4       260.5   +15.7%     +18.7% 
Pôle Sport & Lifestyle                744.2       807.5    -7.8%      -3.9% 
Puma                                  692.3       752.9    -8.0%      -4.0% 
Other brands                           51.9        54.6    -4.9%      -2.4% 
Eliminations and other                  8.8        -2.3                   
KERING - Continuing                 2,308.0     2,271.8    +1.6%      +5.2% 
activities
                                                                       
^(1) Figures have been restated of Redcats and Group                        
Fnac (IFRS 5).
^(2) Comparable scope and exchange rates.

 

                                                                  Comparable
                                              Q1 2012   Reported   change   
        (in € million)               Q1 2013     ^(1)     change     ^(2)
                                                                           
Luxury Division                      1,523.4    1,457.9    +4.5%      +6.4% 
Gucci                                  865.9      847.9    +2.1%      +4.0% 
Bottega Veneta                         229.0      218.0    +5.0%      +8.8% 
Saint Laurent                          127.2      108.8   +16.9%     +18.7% 
Other brands                           301.3      283.2    +6.4%      +6.9% 
Pôle Sport & Lifestyle                 842.7      886.5    -4.9%      -2.5% 
Puma                                   781.6      820.9    -4.8%      -2.3% 
Other brands                            61.1       65.6    -6.9%      -5.7% 
Eliminations and other                   4.3       -2.5                   
KERING - Continuing activities       2,370.4    2,341.9    +1.2%      +3.3% 
                                                                       
^(1) Figures have been restated of Redcats and Group                        
Fnac (IFRS 5).
^(2) Comparable scope and exchange rates.

PRKeringQ3sales201324102013

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Kering via Thomson Reuters ONE
HUG#1738059
 
Press spacebar to pause and continue. Press esc to stop.