Executive Summary

• French luxury group Kering reported 3Q16 revenue of €3.2 billion, up 10% from €2.9 billion in 3Q15 and above the consensus estimate of €3.1 billion. In constant currency, revenue increased by 10.5%.
• The Luxury Activities segment’s revenue increased by 12% year over year and by 11.3% in constant currency, to €2.1 billion. The Sports and Lifestyle Activities segment’s revenue increased by 6.5% year over year and by 9.3% in constant currency, to €1.1 billion.
• The strong 3Q16 revenue results marked a clearly improving trend from 1H16 results. The impressive sales recovery was driven by double-digit revenue growth across all geographic regions except Japan. Both the Luxury and Sports and Lifestyle divisions showed strong sales momentum that was propelled by remarkable revenue gains at Gucci, Yves Saint Laurent and Puma.