Kering Reports Record Recurring Operating Income for 2017

Kering, the global luxury group, reported record financial performance for the fiscal year 2017, announcing February 12, 2018. Consolidated revenue increased by 25.0% to €15.48 billion, with comparable growth at 27.2%. The company's recurring operating income saw a significant rise of 56.3%, reaching €2.95 billion, and the operating margin improved to 19.0%.

The luxury activities segment, the core of Kering's business, grew by 29.9% on a comparable basis. Brands such as Gucci and Yves Saint Laurent demonstrated particularly strong performance, with Gucci achieving 44.6% comparable growth. Other luxury houses, including Balenciaga, also experienced accelerated revenue growth.

Sport & Lifestyle activities also contributed positively, with revenue up 14.7% on a comparable basis, largely driven by Puma. Puma itself reported a 15.8% comparable revenue increase and a 92.7% jump in recurring operating income.

François-Henri Pinault, Chairman and CEO, described 2017 as a "phenomenal year" for Kering, highlighting the substantial revenue and operating income gains. He emphasized the strength of the group's business model and the potential of its individual houses. Kering also announced plans to distribute a significant portion of its stake in Puma SE to shareholders as part of its strategic shift towards becoming a pure luxury player.