Gucci drove a massive boost in luxury group Kering’s sales last year. Group sales soared 29.4 per cent to €13.66 billion, with Gucci’s comparable sales up 36.9 per cent and Saint Laurent up 18.7 per cent. Gucci’s sales in Asia-Pacific rose by 45 per cent, Saint Laurent’s by 21.2 per cent.
Every key geographic region contributed to the growth, with North America outperforming Asia in comparable-sales growth, the markets rising 37.3 per cent and 34.1 per cent respectively. Sales in Japan rose 23.7 per cent and in Western Europe by 23 per cent.
“Once again, we significantly outperformed our sector,” said Francois-Henri Pinault, Kering’s chairman and CEO, perhaps referencing the closing of the gap between Gucci and archrival Chanel. The two brands are now neck and neck, but the still trail LVMH’s Louis Vuitton label.
“In an environment that was generally favourable but grew increasingly complex, Kering generated €2.8 billion in incremental revenues and €1.3 billion in additional EBIT compared to 2017. Our healthy, balanced and profitable growth reflects skillful execution of our strategy, rigorous financial discipline, and a shared culture emphasising responsibility and commitment,” he said.
Financial director Jean-Marc Duplaix told a media briefing that Chinese spending on luxury goods was showing signs of moving from overseas locations to the mainland.
“Sales among our Chinese clientele remained very dynamic in the fourth quarter, even with a high comparative base,” he said.
