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Strong Gucci sales drive Kering rebound to pre-Covid revenue

By Huw Hughes

21 Apr 2021

Business

Image: Kering, Facebook

Italian luxury label Gucci has helped drive a rebound in the revenue of its parent company Kering to pre-Covid levels in the first quarter of the year.

The French luxury group’s revenue rose 25.8 percent to 3.89 billion euros on a comparable basis, ahead of analysts’ estimates.

It is another indication that the luxury industry is beginning to recover after a devastating year of on-and-off lockdowns, with Kering seeing strong sales growth across its luxury houses’ directly operated networks in regions like Asia-Pacific (83 percent) and North America (46 percent) where restrictions are easing.

The group also saw sharp growth in online sales across regions, up 108 percent in the quarter, driving the penetration of e-commerce to 14 percent of retail sales.

Gucci reports strong Q1 sales

Breaking the company’s performance down by brands, Gucci performed particularly well, with revenue up 24.6 percent to 2.17 billion euros. The label saw strong growth in Asia-Pacific and North America, where sales soared 78 percent and 51 percent, respectively.

At Yves Saint Laurent, revenue increased 23.4 percent to 516.7 million euros, while sales at Bottega Veneta increased 24.6 percent to 328.2 million euros.

Revenue from Kering’s Other Houses was up 33.1 percent to 714.3 million euros.

“In the first quarter, Kering delivered a strong topline performance, bouncing back above pre-pandemic levels,” said chairman and CEO François-Henri Pinault in a statement.

“Growth was consistent across all our Houses, and we are particularly pleased with Gucci’s momentum as the brand kicks off its centennial celebration. While 2021 should still face some impact from the health crisis, the strategy, positioning and creativity of our Houses will enable each one of them to thrive in today’s environment.”