French luxury goods group Kering has hailed “another quarter of outstanding growth”, thanks, once again, to a standout performance at its Gucci label.
Revenue for the period came in at EUR3.4bn (US$4.4bn), up 27.5% on a comparable basis and 27.6% as reported.
Gucci was the quarter’s standout performer, posting what Kering called an “excellent performance across all distribution channels, regions and product categories”, as revenue jumped 35.1% on a comparable basis and 34.9% as reported, to EUR2.1bn.
Meanwhile, Yves Saint Laurent sustained its growth trajectory with a “robust” 16.1% sales rise on a comparable basis, with revenue for the label reaching EUR446.9m. On a reported basis, sales were up by 16.5%.
Sales at Bottega Veneta, however, were down by 8.4% on a comparable basis to EUR258.9m from EUR280.7m in the year-ago period. Kering said the business is undergoing a ” rejuvenation” of its product offering and brand expression under the guidance of its recently appointed creative director.
Revenue from the group’s other houses, meanwhile, amounted to EUR516.4m, up 32.2% both as reported and on a comparable basis, driven by “exceptional momentum” at Balenciaga and ongoing sales growth at Alexander McQueen.
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Kering added comparable growth in directly operated stores amounted to 27.6% in the period, driven by double-digit increases across all regions, led by North America (up 36.1% comparable) and Asia Pacific (up 33.3% comparable). Growth in online sales exceeded 80%.
“We are extraordinarily proud of the remarkable performances Kering delivers quarter after quarter,” CEO François-Henri Pinault said. “Our growth, whose pace is unprecedented in the luxury sector, is sound, well balanced and sustained across all regions and distribution channels.
“The talent of each of our houses at creating strong emotional ties with its customers, conceiving a bold, generous creative universe, and reinventing its codes, is at the root of Kering’s success.
“Beyond short-term developments, we know that the secular growth of the luxury market, but particularly our solid fundamentals and the discipline with which we implement our strategy, will continue to support our operating and financial outperformance.”