Activity report — 2016 PDF

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Activity report - 2016

In moving to the former Laennec hospital at

40 rue de Sèvres, Kering has chosen a location

on Paris's Left Bank in a neighbourhood with an exceptional cultural and artistic heritage that is also imbued with a rich history of fashion and luxury. The Group decided to take possession of one of the capital city's architectural jewels, lending it a new lease on life whilst respecting the original ethos of the site and its long, rich history.

This encounter has resulted in an elegant

and atypical place that has become a source of inspiration for all with its simple beauty.

It is here that Kering is opening a new chapter

of a luxury Group in motion that is both audacious and free to make its own choices. 40
rue de Sèvres

Paris 7

e 03 04 07 08 11

Message from the Chairman

- p. 18

Executive Committee

p. 22

Highlights

p. 24

Group Profile

p. 28

Business Model and Strategy

p. 30

Kering Foundation

p. 36
Gucci p. 42

Bottega Veneta

p. 44

Saint Laurent

p. 46

Balenciaga

p. 48

Alexander McQueen

p. 50

Stella McCartney

p. 52

Christopher Kane

p. 54

Brioni

p. 56

Boucheron

p. 58

Pomellato

p. 60
Dodo p. 62

Qeelin

p. 64

Girard-Perregaux

p. 66

Ulysse Nardin

p. 68
Puma p. 70

Volcom

p. 72

Key Figures

p. 77

Summary

The Group17

Message from

François-Henri Pinault

Chairman and CEO

In a sector undergoing far-reaching transformation, our foresight, our bold and modern vision of Luxury, and the quality of our execution have enabled us to outperform our peers and deliver outstanding operational and financial results in 2016. Despite the Luxury industry's rather moderate growth context, our revenue increased by over 8% to reach 12.4 billion euros, and our recurring operating income rose nearly 15% to 1.9 billion euros. At the end of the year, when the industry was starting to show more promise,

Kering recorded particularly strong growth.

Luxury has experienced a global expansion

and continues to benefit from favourable demographic factors, as well as the emergence of new consumer categories. In this context, both established luxury Houses and younger brands that benefit from the support of major groups enjoy undeniable competitive advantages.

However, I am convinced that a brand's historical

pedigree and critical mass are no longer sufficient.

Our customers are changing. They are younger,

permanently connected to the web, have access to infinite amounts of information when making their purchasing choices, and are engaged in an ongoing search for meaning. To attract and keep these customers, we must offer them an incomparable experience.

Our concept of Luxury is intimately bound up

with the ability of our products to create desire and, beyond the products themselves, the aptitude of our Maisons to inspire dreams and to communicate the authenticity and sincerity of their values and the story that they tell.

Our vision of Luxury is based on strong creative

content, built upon year after year, by combiningquotesdbs_dbs7.pdfusesText_5

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[PDF] Activity report — 2016