Luxury group Kering has reported a strong increase in revenue, driven by its Gucci brand, just months after it announced its move to get out of the sports lifestyle business and focus purely on its luxury brands.
Kering, the owner of high fashion labels Gucci, Saint Laurent and Alexander McQueen, has posted a 27 per cent increase in revenue for its first quarter buoyed by the continued success of its flagship Gucci brand and, according to chairman and CEO François-Henri Pinault, “exceptional momentum” at Balenciaga.
The French luxury goods conglomerate posted quarterly sales that totaled €3.11 billion, excluding discontinued operations, compared with the €2.45 billion over the same period last year.
The company also reported double-digit growth in all geographical regions, particularly North America, with a 54.3 per cent increase on a comparable basis, and Asia Pacific, up 42.2 per cent on a comparable basis.
Online sales for the group more than doubled during the quarter. The company also restated its revenue figures for the quarter to account for the disposals of Stella McCartney and Volcom as well as the sale of most of its stake in sportswear brand Puma.
The group’s growth in revenue was driven mainly by its “spectacular growth” at Italian fashion house Gucci, where sales rose 38 per cent, according to Kering.
“Kering maintained its outstanding sales momentum in the first quarter,” Pinault said. “Under its new luxury pure player profile, the group clearly outperformed a market that remains well oriented.”
Pinault said although they are facing a high base of comparison and a tough currency environment for the balance of the year, they are confident they will continue to do better than their peers.
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