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Kering Revenues Gain 1.2% in Q1

Meagre gain reflects softness at its core Gucci and Puma brands.

PARIS — Softness at Gucci and Puma, and currency headwinds, held back first-quarter gains at Kering, which reported a 1.2 percent uptick in revenues to 2.4 billion euros, or $3.23 billion.
 
The core brands of the French conglomerate’s luxury and nascent sport/lifestyle divisions saw sales in the three months ended March 31 decline 3.2 percent and 6.6 percent respectively.
 
At constant exchange rates, group revenues gained 4.1 percent; and Gucci, 0.3 percent, while Puma slipped 0.4 percent.
 
The results, reported after the close of trading on the Paris Bourse, were marked by a contrasting performance between Kering’s activities, with luxury posting organic growth of 6.3 percent, reflecting a strong performance in directly operated stores in all regions, the company said, trumpeting a 72 percent growth at Saint Laurent.

 

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By contrast, the sport and lifestyle business declined 0.2 percent.
 
François-Henri Pinault, Kering’s chairman and chief executive officer, cited “improving trends” in its sport and lifestyle businesses, and credited its “brand elevation and in-store excellence” for the gains in luxury.
 
He gave no specific guidance other than to “improve its operating performance in 2014 as a whole.”
 
Dollar figures are converted from euros at average exchange rates for the quarter.

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