Kering, the luxury goods conglomerate that owns the iconic brand Gucci, experienced a surge in its share prices following a positive report on its first quarter sales. The remarkable rebound of Gucci’s revenues was the primary driver behind Kering’s shares rising by 1.1% in early session trading, positioning the company as one of the top performers on France’s benchmark CAC-40 index.

During the initial quarter, Kering achieved an overall revenue of 3.89 billion euros ($4.7 billion), an impressive 25.8% increase when excluding exchange rate fluctuations and acquisitions. Gucci’s sales exceeded analysts’ forecasts, indicating the triumph of recent product and marketing initiatives, especially those catering to local markets and online platforms.

Leading investment bank, Citi, affirmed their “buy” rating on Kering shares and expressed optimism regarding the potential growth of Gucci and its contribution to the company’s earnings per share. Citi suggested that if Gucci continues to benefit from its recent strategies, a new era of growth could bring significant upgrades in earnings per share.

All in all, Kering’s outstanding performance during the first quarter, fueled by Gucci’s accomplishments, has instilled confidence not only among investors but also analysts. The luxury goods conglomerate is confidently positioned to capitalize on the recovering luxury market and maintain its growth trajectory.

Useful for more information:
1. Kering Official Website
2. Gucci Official Website