Wednesday, September 23, 2020

Gucci’s parent company heralds recovery of luxury sector


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.

READ MORE: Gucci, Stella McCartney parent company sales up by 10%

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.

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