Executive Summary

• French luxury group Kering reported 1H16 revenue of €5,693 million, up 3.3% from €5,513 million in 1H15. Revenues were above the consensus estimate of €5,605 million. At constant currency, revenues rose an impressive 5.5%.
• The Luxury activities segment’s revenue increased by 3.1% year over year and 4% on a constant currency basis to €3,878 million in 1H16. The Sports and Lifestyle activities segment’s revenue increased by 3.8% year over year, or 9.1% on a constant currency basis to €1,797 million in 1H16.
• Recurring operating profit grew by 4.9% to €811 million in 1H16, above the consensus estimate of €787 million.
• Recurring EPS increased by 6.4% to €4.13, below the consensus estimate of €4.18.
• Going forward, the Luxury activities will focus on achieving same-store revenue growth and a targeted and selective expansion strategy for the store network. Puma expects to achieve further revenue growth and an increase in recurring operating income for FY16.