Gucci sales for the fourth quarter last year surged past levels not seen since before the COVID-19 pandemic, as luxury group Kering SA’s biggest brand drew shoppers to its latest ready-to-wear collection.
Comparable revenue at Gucci rose 32 percent to 3.07 billion euros (US$3.49 billion) in the period from the year before, Paris-based Kering said in a statement yesterday. Analysts had expected growth of 18 percent.
The release in September last year of Gucci’s Aria collection helped generate buzz and sales, while the film House of Gucci, starring Lady Gaga, drew more attention to the brand.
Photo: AP
Led by CEO Marco Bizzarri and creative director Alessandro Michele, Gucci represents more than half of Kering’s revenue and close to three-quarters of recurring operating income.
The company was also helped by the performance of Yves Saint Laurent, where revenue soared 47 percent during the quarter, outperforming all the group’s other major brands.
“We are confident we will extend last year’s momentum in 2022 and in coming years,” Kering CEO Francois-Henri Pinault said in the statement.
Kering’s results provide the latest evidence that luxury sales are storming back from the pandemic, as well-heeled shoppers crowd back into stores in much of the world. Rival LVMH SE last month reported record annual revenue, helped by surging demand for Louis Vuitton bags and Tiffany rings.
Analysts are also focusing on pricing power at luxury houses, with Chanel and other names increasing prices, citing inflationary pressures. In a call with reporters, Kering chief financial officer Jean-Marc Duplaix said he expected more targeted price hikes for Gucci this year.
Kering’s recurring operating income for the year rose 60 percent to 5.02 billion euros, surpassing analysts’ 4.77 billion euros estimate.
Separately, online grocery services provider Ocado Group PLC said that it plans to extend its partnership with French firm Casino Guichard-Perrachon SA.
The companies signed a preliminary agreement to create a logistics joint venture in France that would be available for use by all grocery retailers in that market, Ocado said yesterday.
Casino will also use Ocado’s software to run its Monoprix in-store fulfillment operation, and Ocado is to integrate the Octopia online platform onto its systems.
Additional reporting by Bloomberg
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