Executive Summary

• Kering grew 2018 revenues 26.3%, as Gucci’s momentum continued.
• Gross margin expansion and operating leverage resulted in a 400-bps operating margin increase to 28.9% of sales.
• Kering’s use of AI to identify and target high potential customers is proving almost twice as successful as selections made by sales associates, and Kering is rolling this out as part of its transformational initiatives.