Gucci and Yves Saint Laurent owner Kering has posted figures showing a positive return to growth in the luxury sector, spurred by the former’s dramatic turnaround.
In 2016 Kering, which also owns brands Puma, Volcom, Stella McCartney and Alexander McQueen, posted a like-for-like sales rise of 8.1 per cent to £10.57 billion.
The French fashion group proposed raising its share price to £3.92 per share, following its “strongest revenue growth since 2012”. Shares already rose by two per cent this morning following the news.
Both Gucci and Yves Saint Laurent were standout performers for the group, with like-for-like sales rising 12.7 per cent and 25.5 per cent respectively.
This is the sixth consecutive year Yves Saint Laurent has reported growth above 20 per cent, and marks a continually successful turnaround programme for Gucci, which began in 2014.
Kering‘s sports brand Puma also posted a 10.4 per cent rise in growth.
This follows years of pressure for the luxury sector as declining tourism and terrorism affected sales across Europe.
The newly-invigorated tourism industry, largely sparked by Brexit and the weak pound, has been a lifeline for the sector.