The parent company of luxury retailers Gucci and Yves Saint Laurant is the latest to bask in luxury retail’s worldwide growth after recording a quarter of strong revenue growth.
Overall revenue at Kering – which also owns Stella McCartney, Alexander McQueen and sports brand Puma – for the first quarter of 2017 was up 31.2 per cent on a reported basis, to €3.57 billion (£3.02 billion), thanks to a 34 per cent spike in luxury goods sales.
Gucci led the way with its strongest revenue growth in years, up by 51.4 per cent to €1.35 billion (£1.14 billion) for the quarter.
Kering said Gucci’s growth was driven by double-digit increases across its product categories, including “ever-increasing demand for ready-to-wear and shoes”, as well as “excellent momentum” in leather goods.
Yves St Laurent was Kering’s next-best performing brand, with revenue growing 35.4 per cent, bolstered by consumers’ positive reception to the summer collection designed by Anthony Vaccarello.
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“Kering achieved a record performance in the first three months of the year, posting a sharp acceleration in sales growth,” chairman and chief executive officer François-Henri Pinault said.
“In a climate of persistent geopolitical and macroeconomic uncertainties, our first quarter puts us in a particularly good position for the balance of the year.”
Kering’s trading update come soon after the LVMH Moet Hennessy Louis Vuitton group posted a 15 per cent rise in revenues in its first quarter, while Burberry recently reported a 14 per cent rise in total revenue in the six months ended March 31.
Prade was an exception for the luxury retail sector, recently posting its lowest full-year profit since 2011 and a nine per cent decline in revenues.