* YSL eyes sales of 2 bln euros mid-term, 3 bln euros
* YSL eyes operating margin of 25 pct mid-term, 27 pct
* YSL is Kering's second-largest brand after Gucci
By Dominique Vidalon and Pascale Denis
PARIS, June 19 Yves Saint Laurent, French
luxury group Kering's second-biggest brand, expects to
nearly double revenue in three to five years while boosting
profits, adding to its recent strong growth, the company said on
Francesca Bellettini, president and chief executive of the
fashion house since September 2013, said the goal was to lift
sales from 1.2 billion euros in 2016 to 2 billion euros ($2.2
billion) in the mid-term and 3 billion euros in the longer term.
YSL also aims to raise its operating margin from 22 percent
in 2016 to 25 percent mid-term, and 27 percent long-term.
"This company was really a Ferrari. So we gave it the engine
of a Ferrari and not the engine of a Cinquecento and now it will
go as a Ferrari should go," Bellettini told reporters at Yves
Saint Laurent Investor Day.
The company expects higher sales which will be spurred from
a variety of measures including opening more stores, developing
its eyewear, silk and jewellery categories, as well as more
investment in digital businesses and travel retail.
Other key moves have included giving more autonomy to the
chief operating officers in each YSL division, and looking to
focus more on local clients, who now make over 60 percent of the
YSL brand's clientbase.
Bellettini said YSL aimed to continue to outperform the
broader luxury goods market, which Bain & Co expects will grow
at an annual growth rate of 3-4 percent to reach 280 billion-290
billion euros in sales by 2020.
YSL is now the second-biggest brand in the Kering luxury
portfolio after Italy's Gucci, accounting for 14 percent of the
sales of the luxury division, and having multiplied its sales by
more than four times since end-2010.
Belgian designer Anthony Vaccarello joined in April 2016,
and he has sought to build on the success achieved under his
predecessor, star designer Hedi Slimane.
Slimane, who had been at the brand's creative helm since
2012, had injected a more 'grungey' aesthetic to great
commercial success to the iconic brand founded in 1961.
Last year, YSL's revenues rose 25.5 percent on a comparable
basis - its sixth consecutive year of above 20 percent growth -
while recurring operating income jumped 59.3 percent.
Western Europe acccounted for 38 percent of sales last year,
Asia Pacific and North America 23 percent each, and Japan 9
Bellettini said the plan was to increase the stores network
to 200 from 159, opening 20 stores per year. In China alone, the
number of stores could rise to 25-30 from 18.
Overall, the YSL brand planned to spend 5 percent of its
revenue on capital expenditures each year, said Bellettini, who
added that YSL would also step up its E-Commerce push in order
to capture more tech-savvy "Millennial" customers.
($1 = 0.8921 euros)
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)