Gucci powers massive Kering sales growth
Kering sales growth significantly outpaced its rivals during the third quarter, up 27.6 per cent as reported and 27.5 per cent on a comparable basis, to €3.402 billion.
In Kering-operated stores, Asia Pacific sales rose 33.3 per cent on a comparable basis, bettered only by North America’s 36.1 per cent increase. Growth in online sales exceeded 80 per cent and wholesale sales rose 27 per cent.
“We are extraordinarily proud of the remarkable performances Kering delivers quarter after quarter,” said chairman and CEO Francois-Henri Pinault. “Our growth, whose pace is unprecedented in the luxury sector, is sound, well balanced and sustained across all regions and distribution channels.”
Pinault said the company’s enduring success comes down to the talent of each of its brands in “creating strong emotional ties with its customers, conceiving a bold, generous creative universe, and reinventing its codes”.
“Beyond short-term developments, we know that the secular growth of the luxury market, but particularly our solid fundamentals and the discipline with which we implement our strategy, will continue to support our operating and financial outperformance.”
Gucci led Kering sales growth during the quarter, with sales up 35.1 percent and strong performance across all distribution channels, regions and product categories. Gucci Asia-Pacific sales soared 41.9 per cent.
Yves Saint Laurent sales rose 16.1 per cent, driven by the strong performance of iconic lines and the success of new collections.
While Bottega Veneta sales were down 8.4 per cent on a comparable basis, the label is in a transitional phase led by recently appointed creative director Daniel Lee (ex Celine). His first full collection will go on sale early next year.
Kering’s other houses (labels) achieved a 32.3 per cent increase in sales, driven by “exceptional momentum” at Balenciaga and ongoing growth at Alexander McQueen. New collections and extended iconic lines from Boucheron, Pomellato and Qeelin were “very well received”.
The watches and jewellery categories delivered what the company described as “solid performances”.