Gucci’s sales rebounded in the first quarter, signaling a recovery for the luxury brand after the appeal of its flamboyant fashions waned last year.
Comparable sales, a key measure of retail performance, jumped 25 percent at the Italian fashion house to 2.17 billion euros (US$2.61 billion), owner Kering SA said in a statement on Tuesday. Analysts had expected a 19 percent gain. Gucci represents 56 percent of total group revenue.
Gucci, which is marking its 100th anniversary this year, suffered more last year than some of its fashion peers. Shoppers judged the luxury brand’s maximalist aesthetic to be out of step with the mood during the COVID-19 pandemic.
Photo: AFP
Kering also underinvested in marketing and product launches at Gucci last year, Kering chief financial officer Jean-Marc Duplaix said during a call with analysts.
However, the company has since changed tack with pop-up events in its stores, and the Italian name is soon to release a new handbag with a bamboo handle, he said.
Last quarter, Gucci benefited from “triple-digit” percentage growth rates in China, aided by positive consumer sentiment, he said.
More than half of the brand’s revenue came from the Asia-Pacific region.
Sales in the retail network in North America — its second-biggest market — grew 51 percent. Duplaix pointed to stimulus checks in the US as a factor in the results.
Kering’s Bottega Veneta and Yves Saint Laurent brands in the first quarter had comparable sales growth of 25 percent and 23 percent respectively, which also exceeded estimates.
Bottega Veneta has been relying in part on so-called influencers to promote its products on social media.
Bottega Veneta had its best first quarter ever, Duplaix said.
Overall, “we’re very satisfied with the start of this year,” he said.
On average in the first quarter, 17 percent of Kering’s stores were shut, with about 50 percent closed in Europe. That proportion increased this month with lockdowns in France and Italy, Duplaix added.
Kering has been reducing Gucci’s reliance on wholesalers and instead favoring distribution via its own stores to better control its image and pricing.
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