Gucci parent Kering has reported double-digit growth in every market globally in its first financial quarter – except Japan.
Total sales rose 31.2 per cent – and by 28.6 per cent on a comparable basis. Its luxury division sales rose 34 per cent (31.6 per cent), with Gucci leading the way with a stunning 51.4 per cent increase in reported sales and 48.3 per cent comparable.
Sport & Lifestyle activities, led by Puma, rose 16.5 per cent as reported and 14 on a comparable basis.
Kering’s full first quarter revenue was €3.5735 billion. Although not specifically spelled out, it is clear a recovery in Greater China helped the company.
It described total luxury division sales growth in Asia-Pacific as “remarkable” at 46.7 per cent on a comparable basis.
Gucci’s “outstanding growth” demonstrated the “resounding success of the brand’s creative reinvention and the exceptional skill with which its strategy has been implemented”.
Sales in directly operated stores in Asia Pacific rose 63.1 per cent.
“Gucci’s collections once again proved extremely popular during the period, with double-digit growth for all product categories and ever-increasing demand for ready-to-wear and shoes,” the company said in its results announcement. “Leather goods also experienced excellent momentum, reflecting Gucci’s talent in creating iconic models and successfully renewing them season after season.”
Sales in directly operated Yves Saint Laurent stores in Asia Pacific were up 48.1 per cent on a comparable basis.
Revenue from watches and jewellery houses climbed 13.1 per cent on a comparable basis, with good performances at Boucheron and Pomellato, “demonstrating their innovative flair through new collections, reworked iconic lines and 360-degree marketing campaigns”.
Revenue generated by Kering’s sport and lifestyle activities advanced 16.5 per cent year-on-year as reported and 14 per cent on a comparable basis, “fuelled by an excellent performance” from Puma, which reported record quarterly revenue of €1.0089 billion. All
geographic regions except Japan registered double-digit sales growth and footwear was the leading product category, with sales up by a significant 24.8 per cent on a comparable basis.
Puma’s performance has sparked renewed speculation in some financial press that Kering may spin off or sell the business and cash in on its recovery.