Gucci flies again. In the first quarter of 2021, the brand’s revenues, which generates 60% of Kering‘s turnover and 80% of its profits, grew by 24.6% at constant exchange rates. An increase higher than that expected by analysts: +19%. Overall, the French group’s sales rose 25.8% on a comparable basis for the same period. This means a 5.5% increase at constant exchange rates compared to the first quarter of 2019. Similar growth also for Saint Laurent and Bottega Veneta.
Gucci flies again
In the January-March 2021 period, Kering reported a turnover of 3.2 billion euros: +21.4% at current exchange rates and +25.8% at constant exchange rates on an annual basis. “We are particularly satisfied with the Gucci’s momentum – François-Henri Pinault, president and CEO of Kering, comment -. 2021 is still expected to face some impact from the health crisis. The strategy, positioning and creativity of our houses will allow each of them to thrive in the current context”. Sales in the Asia-Pacific region (+83%), in North America (+ 46%) and online (+108%) explain Kering’s good result.
The action plan
In February, Pinault revealed an action plan for Gucci. The brand came from disappointing results. A plan that included a focus on the sale of bags and other events. “The strategy we have for 2021 is paying off,” Kering chief financial officer Jean-Marc Duplaix told the analysts on Tuesday. The manager noted the brand’s well-balanced growth between ready-to-wear, leather goods and shoes. Reflecting on 2020, Duplaix himself said that in Gucci there was a lack of products and novelties, while the investment in marketing was insufficient. As Vogue Business reports.
The other brands
That said on Gucci, the other Kering brands have not been outdone. On a constant basis, Saint Laurent grew by 23.4% and Bottega Veneta by 24.6%. The “Other Houses” division, which also includes Balenciaga and Alexander McQueen, increased by 33.1%. Regarding any possible mergers and/or acquisitions, Duplaix said the company would not comment on “pure speculation”.
In the photo from the left, a look by Gucci and two by Bottega Veneta