Kering Q3 Sales Growth Beats Estimates

PARIS, France — French luxury-to-sporting-goods producer Kering SA reported third-quarter revenue growth that beat analysts' estimates as demand for Puma footwear and Saint Laurent dresses offset declining sales of Gucci handbags.

Sales climbed 3.1 percent on a comparable basis, Paris- based Kering said Thursday after European markets closed. Analysts predicted growth of 2.8 percent, according to the median of 21 estimates.

Saint Laurent is benefiting from fresh leadership as creative and image director Hedi Slimane's 1,150-euro ($1,283) bags and 3,200-euro leather jackets help make it one of the industry's fastest-growing brands. Footwear sales are boosting Puma's growth and the brand's revamp remains on track, Kering said in the statement. Comparable sales at both brands beat estimates in the quarter, which was characterized by sharp contrasts across regions, the company said.

“I look ahead to the final three months of the year with confidence in our brands’ development potential and in the group’s ability to maintain its growth trajectory,” Kering Chief Executive Officer Francois-Henri Pinault said in the statement.

Kering also named Francesca Bellettini, CEO of Saint Laurent, to its executive committee, along with Carlo Alberto Beretta, CEO of Bottega Veneta.

Saint Laurent and Puma’s performance contrasted with Gucci, Kering’s largest brand. Sales at the handbag maker fell 0.4 percent compared with the 0.3 percent decline predicted by analysts. That follows a 4.6 percent gain in the previous quarter when sales rebounded after discounts of as much as 50 percent in China on old merchandise.

Gucci creative director Alessandro Michele's debut fall- winter collection only arrived in stores a month ago and Kering has said 2015 is a year of transition as it overhauls management and drops distributors.

The luxury industry was dealt a blow last week after Burberry Group Plc said its profit will probably decline for a second straight year.

Kering’s third-quarter revenue reached 2.9 billion euros, matching estimates.

By Andrew Roberts; editors: Matthew Boyle, Paul Jarvis.