Kering, the luxury group behind brands such as Gucci and Saint Laurent, has reported strong financial results for the first quarter of 2021. The company recorded a 25.8% growth in turnover compared to the previous year, exceeding pre-pandemic levels. This growth can be attributed to multiple factors, including the repatriation of purchases and a significant digital presence.
During this period, Gucci continued to be the driving force behind Kering’s success, with a turnover of 2.17 billion euros, marking a 24.6% increase. This growth was fueled by the brand’s popularity in the USA and Asia, where two new flagship stores are set to open soon. Gucci has also shifted its focus from wholesale to a more exclusive distribution strategy.
The CEO of Kering, François-Henri Pinault, expressed his satisfaction with the company’s performance, stating that all of their brands had contributed to the rebound. Pinault highlighted the momentum of Gucci, particularly as the brand celebrates its centenary. Despite the ongoing impact of the health crisis, Pinault believes that the strategy, positioning, and creativity of Kering’s brands will enable them to excel in the current context.
Other brands within the Kering portfolio also experienced positive growth. Saint Laurent saw a 23.4% increase in sales, amounting to 516.7 million euros. Additionally, Bottega Veneta’s decision to withdraw from social media did not negatively impact the brand, as sales increased by 24.6%.
The group’s other brands, including Alexander McQueen, Balenciaga, and Boucheron, collectively reached a turnover of 714.3 million euros in the first quarter, representing a notable increase of 33.1%. The Asia-Pacific region played a crucial role in driving growth, with an impressive 83% increase in sales. North America also experienced a significant 46% increase. These positive performances were supported by the repatriation of purchases at the local level and the growing trend of digital consumption due to social distancing measures. Online sales for the group saw a staggering 108% increase across all regions, with e-commerce now accounting for 14% of Kering’s own sales.
Overall, Kering’s first quarter results showcase a strong recovery and growth for the luxury group, signaling a positive outlook for the rest of the year.
Useful links:
1. Kering Q1 2021 Revenue Press Release
2. Business of Fashion: Kering Reports Strong Q1 Results
