The gross margin of luxury group Kering for fiscal 2017 amounted to €10,133 million, up 30.1 per cent on the previous year as reported. The company’s consolidated revenue was reported at €15,478 million, up 25.0 per cent as reported, 27.2 per cent on a comparable basis. Its net income, group share surged 119.5 per cent in fiscal 2017 to €1,785.6 million.
Earnings per share amounted to €14.17 in 2017, up from €6.46 in the prior year. Earnings per share from continuing operations totalled €14.22, compared with €6.55 for 2016. The company’s consolidated EBITDA jumped 49.4 per cent year on year to €3,464.4 million in 2017, while the EBITDA margin widened by 3.7 percentage points to 22.4 per cent.
Kering’s luxury activities reported further revenue growth in fourth-quarter 2017, with a rise of 24.6 per cent as reported and 30.5 per cent on a comparable basis. The directly operated store network continued on an uptrend, with sales rising 36 per cent on a comparable basis over the quarter. Revenue generated by Kering’s luxury activities in 2017 passed the €10 billion mark, advancing 27.5 per cent as reported and 29.9 per cent on a comparable basis to €10,795.8 million.
“Kering delivered a phenomenal year in 2017. We created over 3 billion euros in additional revenues in a single year, and generated more than a billion in additional EBIT. Gucci, whose performance was nothing short of spectacular, is amplifying its desirability across all markets. Saint Laurent is on a rapid growth track, while Bottega Veneta pursues its redeployment. Balenciaga is charting an impressive development trajectory, and our other Luxury brands are experiencing positive momentum. All of our Houses enjoy huge growth potential, rooted in their skills at reinventing codes, enhancing desirability through bold creative visions, and thereby creating value. We unequivocally demonstrated the strength of our business model. In a global environment that remains uncertain, we will not relax our vigilance, but we are confident that the complementarity of our Houses, our geographic footprint, the diversity of our customer base and the strengths of an integrated Luxury Group will enable us, this year again, to do much better than our markets,” said François-Henri Pinault, chairman and CEO.
“Earlier this year, we announced the completion of our transformation into a luxury pure player. Pending their approval, the distribution to our shareholders of the bulk of Kering’s stake in Puma will allow them to directly benefit from the considerable potential of this brand, which is in the early days of its growth story,” added Pinault.