Skip to main content

Kering SA (PPRUY)  shares hit an all-time high on Wednesday in Paris after the French luxury goods house reported a record performance in the first three months of the year.

The owner of Gucci and Yves Saint Laurent reported first quarter earnings of €3.57 billion on the back of double-digit growth across all activities and all region excluding Japan, the company said. The group saw a surge in its luxury division, with revenue up 34% in the first quarter compared with the first three months of 2016 to €2.4 billion.

Kering shares gained 9.6% in the opening hour of trading in Paris to change hands at an all-time high of €284.05 each, extending their three month gain to 23.85%.

The group saw particularly high sales growth of 36.6% on a constant currency in its directly operated stores. This was driven by remarkable performances in Western Europe and the Asia Pacific region, which reported retail sales increases on a comparable basis of 49.9% and 46.7%, respectively.

Revenue at Gucci surged 48.3% on a constant currency. "The particularly remarkable growth reported by Gucci in the first quarter of 2017 demonstrates the resounding success of the brand's creative reinvention and the exceptional skill with which its strategy has been implemented," Kering said.

Gucci saw "excellent momentum" in its leather goods category, mirroring other luxury houses including French rival LVMH (LVMUY) and Britain's Burberry (BURBY)

Online sales leapt 60.1% on a comparable basis, underscoring the success of the digital strategies implemented by Kering's Luxury Houses, the company said.

"Kering achieved a record performance in the first three months of the year, posting a sharp acceleration in sales growth. Benefitting from somewhat more favorable market conditions, our strong delivery primarily stems from meticulous execution of our strategy and the creative audacity of our Houses," Chairman and CEO Francois-Henri Pinault said in a statement.

"In a climate of persistent geopolitical and macroeconomic uncertainties, our first quarter puts us in a particularly good position for the balance of the year. The Group will continue to focus on organic growth and market share gains, on value creation and ongoing operational and financial discipline," he added.

Yves Saint Laurent delivered a revenue increase of 35.4% as reported and 33.4% on a comparable basis.

The company also owns sportswear maker Puma PMMAF, which reported first quarter earnings that topped €1 billion for the first time on Tuesday.