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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.
IN NO WAY DOES KERING ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE
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
RELATION TO HOLDING, PURCHASING OR SELLING SECURITIES OR OTHER FINANCIAL PRODUCTS OR INSTRUMENTS AND DOES NOT
TAKE INTO ACCOUNT YOUR PARTICULAR INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR NEEDS. BEFORE ACTING ON ANY
INFORMATION YOU SHOULD CONSIDER THE APPROPRIATENESS OF THE INFORMATION HAVING REGARD TO THESE MATTERS, ANY
RELEVANT OFFER DOCUMENT AND IN PARTICULAR, YOU SHOULD SEEK INDEPENDENT FINANCIAL ADVICE. ALL SECURITIES AND
FINANCIAL PRODUCT OR INSTRUMENT TRANSACTIONS INVOLVE RISKS, WHICH INCLUDE (AMONG OTHERS) THE RISK OF ADVERSE OR
UNANTICIPATED MARKET, FINANCIAL OR POLITICAL DEVELOPMENTS AND, IN INTERNATIONAL TRANSACTIONS, CURRENCY RISK.
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
Q1 2017 revenue: 1,354 M€+51.4% reported; +48.3% comparable
Western Europe
28%
North America
19%
Japan
9%
Asia Pacific
38%
RoW
6%
REVENUE BREAKDOWN BY REGION
(on tota l Q1 revenue, in %)
REVENUE CHANGE BY REGION AND CHANNEL( in €m, and comparable growth in %)
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
Retail (83% of sales): +4%
+6% +11%
+14%268
Q1 2016
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: 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
• Number of DOS at end of March: 257
8
SAINT LAURENT
269
Royalties
and others
Q1 2017
364
+48%
Japan
-4%+18%
+35%
RoWNorth
America
Asia
Pacific
+16%
Retail (66% of sales): +31%
WholesaleQ1 2016 Western
Europe
+46%
+48%
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: 364 M€+35.4% reported; +33.4% comparable
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
• Number of DOS at end of March: 166
9
OTHER LUXURY BRANDS
372
Wholesale
+8%
Retail
+18%
Q1 2016
418
Q1 2017
-7%
Royalties and others
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: 418 M€+12.3% reported; +11.1% comparable
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)
• Number of DOS at end of March: 376
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
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: 1,064 M€+16.5% reported; +14.0% comparable
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
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