Executive Summary

• French luxury group Kering reported FY16 revenue of €12.4 billion, up 6.9% year over year and above the analyst consensus estimate of €12.3 billion. At constant currency, revenues increased 8.1% year over year.
• FY16 gross margin expanded by 180bps year over year and operating margin expanded by 100bps to 15.2%. FY16 EPS of €10.17 increased 26% year over year and beat the analyst consensus estimate of €9.93.
• The impressive FY16 revenue results reflect a sharp acceleration in performance in 2H16. Both the luxury and sport & lifestyle divisions showed strong sales momentum, propelled by remarkable revenue gains at Gucci, Yves Saint Laurent and Puma.