Kering, the luxury group known for brands such as Gucci and Saint Laurent, has released its financial results for the first quarter of 2019. The company reported a revenue of over 3.7 billion euros during this period, showing positive growth with a 21.9% increase in reported data and a 17.5% increase in comparable data. However, these numbers indicate a slight slowdown compared to the overall performance of 2018, which saw a growth rate of 29.4%.
Gucci, a powerhouse within the Kering group, continues to drive growth with a 20% increase in comparable data. Although this figure represents a deceleration compared to the previous two years, where growth rates were 45% in 2017 and 37% in 2018, it still surpasses expert estimations. The brand’s performance is attributed to both its permanent collections and new releases, with a notable increase in sales in the Asia Pacific region. Gucci’s wholesale sales increased by more than 16% in the first quarter, while the sales in its own stores recorded a growth rate of over 20%. This growth has been fueled by innovative retail strategies such as the Whooster flagship store and the recently launched connected pop-up store.
While other brands within the Kering group have also shown positive performance, there are some slight nuances. Saint Laurent, for instance, experienced a 17.5% increase in comparable data, showcasing its strength within the luxury market. However, Bottega Veneta saw a decline of 8.9% in the first quarter. The recent appointment of designer Daniel Lee, who took over from Tomas Maier after 17 years, brings hope for a potential revival of the brand’s sales in the coming months.
In terms of specific segments within the group, the Watch Manufactures segment has seen mixed performances, while the Jewelry segment is thriving, thanks to the success of creations from brands like Boucheron, Qeelin, and Pomellato.
CEO François-Henri Pinault expressed optimism about the group’s performance, highlighting their agility and “a very strong start to 2019, showing once again a growth higher than the market”.
Useful links:
1. Kering’s official financial business review
2. Business of Fashion article on Kering’s Q1 2019 results
