YSL Revenue Is Up To 2 Billion Euros In Three Years.

Kering SA (KER.PA)

The group held Yves Saint Laurent Laurent, Saint Laurent (hereinafter referred to as YSL).

On the day of the exclusive investor, he raised the long-term target for the brand to increase its medium-term revenue to 2 billion euros and 3 billion euros.

Kering SA (KER.PA) rose further to a record high of 1.36% to 308.6 euros in early trading after a record high last Friday and Monday.

The former creative director, Hedi Slimane, returned to YSL to become a brand creative director in March 2012 to create a great commercial success. The brand has achieved comparable revenue growth for 20%+ for 6 consecutive years, and in 2016, it has surpassed the Bottega Veneta Veneta, the second largest brand in the Kering SA group.

Yves Saint Laurent, President and chief executive officer of Saint Laurent Francesca Bellettini, said yesterday that the brand could achieve 2 billion euros in revenue and 25% business profit in 2021 through retail expansion, expansion of glasses, silk and jewellery products, as well as investment in digital and tourism retail channels. He also set a long-term operating profit margin of 27% and a long-term goal of earning 3 billion euros.

Kering SA, the largest brand Gucci of Gucci group, gained 4 billion 378 million 300 thousand euros in revenue after 12.7% growth last year.

At the same time, Bain & Co. Bain and Italy

A joint study by Altagamma Association, a licensing Association, predicts that the luxury industry will record an average annual growth rate of 3%-4% before 2020, when the industry will increase to 2800-2900 billion euros.

According to the world clothing and shoe net, the revenue of YSL 2016 fiscal year was 1 billion 220 million euros, accounting for 14% of the group's luxury sector. It was 2.5 times higher than that of Hedi Slimane Slimane for two euros in the first 2011 fiscal year.

In 2016, the comparable growth rate of revenue reached 25.5%, operating profit increased by 59.3% to 268 million 500 thousand euros, and the operating profit margin also increased by 470 basis points to 22%.

In the first quarter of 2017, the growth rate of revenue increased to 33.4% in the first quarter of the year. Western Europe and the Asia Pacific region recorded a comparable growth rate of 46% and 48.1% respectively. The first quarter shows the success of the new creative director Anthony Vaccarello since April, because the January 2017 summer series was completely designed by Anthony Vaccarello.

"This company is really a Ferrari," Francesca Bellettini told reporters. "So we gave her the engine of Ferrari instead of the Cinquecento engine of Fiat, and now she will gallop at Ferrari speed."

YSL will launch a new round of expansion since the Hedi Slimane 2012 reshaped the brand. It will spend 5% of its annual revenue as capital expenditure, expanding at 20 new stores each year in mature and emerging markets. By the end of 2016, the brand will have 159 stores and will increase to 200 in 2020. The number of stores in China will increase from 18 to 25-30.

Marketing is also the main direction of investment. The investment in digital marketing will double this year. The brand will also cultivate consumers' desire for YSL, through various advertising activities.

In addition, the chief operating officer of the brand will gain greater autonomy to meet the needs of local customers, who account for 63% of the total.

Francesca Bellettini also specifically mentioned the customer composition of YSL, 70% of which is the millennial generation, "brands are becoming more synchronized with the world," she pointed out.

On the other hand, women aged 25-34 contribute 52% to the group.

In improving profitability, the brand plans to increase the proportion of homemade products, which is less than 10%.

Tuscan's handbag factory will expand and expand, which will also help ensure the quality and location of luxury products.

Citigroup Inc. Citibank analyst Thomas Chauvet said in its latest research report, "Saint Laurent" proposed the most exciting medium term growth and profit margin expansion target in the luxury industry.

Barclays PLC Barclays analyst Julian Easthope believes that the 2 billion euro's revenue target is not a problem for YSL, while the 3 billion euro is "far higher", but it also proves Kering SA's commitment to the long-term investment and growth of the brand.

Julian Easthope believes that YSL needs to build a retail network with 350 stores to reach the scale of large brands, which is also a necessary condition to achieve 3 billion euro income.

At present, retail accounts for 68% of YSL revenue, and wholesale and licensing account for 27% and 5% respectively.

Leather products are the largest category, accounting for more than half of the income. Clothing and footwear account for 23% and 15%, while other products account for 9%.

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