In the first quarter of 2021, Kering, the French luxury group, experienced a remarkable increase in sales, with a growth of 26%. This surge in sales was primarily driven by the outstanding performance of its flagship brand, Gucci. Despite the challenges posed by the ongoing coronavirus pandemic and the subsequent lockdown measures in many parts of Europe, Kering managed to offset these setbacks by registering growth in the Asian and American markets.

Gucci, which contributes to nearly 60% of Kering’s overall revenues and 80% of its profits, witnessed a significant rise in comparable revenues by 24.6%. This exceeded the analyst consensus forecast of 19% growth. It is important to note that Gucci faced some difficulties in 2020, falling behind its competitors such as Louis Vuitton and Hermes from LVMH. This raised concerns among investors regarding the potential decline of the brand after experiencing five years of exceptional growth.

However, Kering’s recent sales report indicates a strong recovery for Gucci. The brand’s success can be attributed to various factors, including its ability to adapt to changing market conditions and evolving consumer preferences. Furthermore, Gucci’s innovative and creative designs continue to resonate with customers worldwide.

In terms of geographical sales distribution, Kering reported an 83% increase in the Asia Pacific region and a 46% increase in the United States. These two markets have proven to be crucial drivers of growth for the luxury group. Additionally, Kering’s e-commerce sales experienced a significant surge, now accounting for 14% of total sales.

The rise of online sales reflects the shifting landscape of retail, with more consumers turning to digital platforms for their luxury purchases. Acknowledging this trend, Kering has actively invested in its e-commerce capabilities to provide a seamless and personalized shopping experience to its customers.

Overall, Kering’s robust sales performance in the first quarter of 2021 showcases the resilience and strength of the luxury group, fueled particularly by the exceptional rebound of Gucci. With the ongoing recovery in key markets and a continued focus on digital innovation, Kering is well-positioned to maintain its growth trajectory and further strengthen its position in the luxury industry.

Sources:
Reuters: Gucci’s momentum drives stellar start to 2021 for parent Kering
Business of Fashion: Gucci Sales Surge 34% in First Quarter