Kering Reports Record Operating Income for 2016

Kering, the global luxury group, has reported a strong performance for the fiscal year 2016, with consolidated revenue reaching €12.385 billion, an increase of 6.9% as reported and 8.1% on a comparable basis. The company highlighted particularly robust growth in its luxury activities, which saw a 7.8% increase on a comparable basis, driven by exceptional performances from brands such as Gucci and Yves Saint Laurent.

The group's recurring operating income reached a record high of €1,886 million, marking a 14.5% increase compared to 2015. This financial achievement was underpinned by a sharp acceleration in growth during the second half of the year, which posted a 10.5% comparable increase. Kering attributed its outperformance to a clear vision for luxury and effective strategic execution.

Kering's Sport & Lifestyle activities also demonstrated solid growth, with revenue up 9.0% on a comparable basis, bolstered by the performance of brands like Puma. The company emphasized that its overall results surpassed industry peers, reflecting the strength of its brand portfolio and its ability to capture market share.

Looking ahead to 2017, Kering intends to maintain its focus on organic growth and value creation for its Houses, acknowledging the uncertain macroeconomic and geopolitical environment. The company's net income attributable to shareholders rose 16.9% to €814 million, and a dividend of €4.60 per share is recommended, representing a 15% increase year-on-year.