Thursday, January 28, 2021

Kering reaps rewards of soaring luxury retail demand

Kering animal welfare

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.

READ MORE: Christian Dior now fully owned by LVMH

“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.

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