Gucci and Saint Laurent props up Kering’s results – 11/2/17

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Kering has to credit Gucci and Saint Laurent for their exceptional rise in sales in 2016.

Gucci’s revenue advanced 21 per cent in the fourth quarter, almost twice as fast as analysts expected. Full-year sales at the business, Kering’s largest, exceeded €4 billion euros ($AUD5.5 billion) for the first time as creative director Alessandro Michele reignited interest in the label. Gucci’s overall 2016 result was up by 12.7 per cent.

Saint Laurent also posted exceptional comparable growth, up by 25.5 per cent.

Consolidated revenue was reported at €12,385 billion ($AUD17.1 billion), up 6.9 per cent as reported and 8.1 per cent on a comparable basis. Kering’s Luxury portfolio rose by 7.7 per cent and their Sport & Lifestyle activities was up by 5.5 per cent.

“In a sector undergoing far-reaching transformation, our foresight and the quality of execution of our strategy enabled us to outperform our peers and deliver outstanding operating and financial performances. Rewarding our vision of luxury, grounded in powerful creative content and long-lasting stylistic codes, we continue to gain market share, as witnessed by the spectacular performances of Gucci and Yves Saint Laurent last year. In 2017, in an uncertain macroeconomic and geopolitical environment, we will keep concentrating on the organic growth of our Houses and on value creation, so as to intensify our current momentum.” said François-Henri Pinault, Chairman and CEO.

Kering follows peers LVMH, Burberry and Hermès as the latest luxury-goods company to report improvements in Asia and Europe.

Gucci’s growth was in contrast to Kering’s Bottega Veneta brand, where sales dropped 9.4 per cent in 2016. The company, which in September appointed former Hugo Boss chief Claus-Dietrich Lahrs to lead a revival, said the decline began to ease in the fourth quarter.

Will things improve for Bottega Veneta in 2017 and continue to boom for Gucci? Only time will tell.

By Cassandra Murnieks

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