Gucci sales climb past pre-pandemic levels on new ready-to-wear collection

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Gucci sales surged past pre-pandemic levels in the fourth quarter as luxury group Kering SA’s biggest brand drew shoppers to its latest ready-to-wear collection.

Comparable revenue at Gucci rose 32 percent to 3.07 billion euros ($3.49 billion) in the period from the year before, Paris-based Kering said in a statement on Thursday. Analysts had expected growth of 18 percent.

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The release in late September of Gucci’s Aria collection helped generate buzz and sales, while the film ‘House of Gucci,’ starring Lady Gaga, drew more attention to the brand.

Led by CEO Marco Bizzarri and Creative Director Alessandro Michele, Gucci represents more than half of Kering’s revenue and close to three quarters of recurring operating income.

The company was also helped by the performance of Yves Saint Laurent, where revenue soared 47 percent during the quarter, outperforming all the group’s other major brands.

“We are confident we will extend last year’s momentum in 2022 and in coming years,” Kering’s billionaire chief executive officer, Francois-Henri Pinault, said in the statement.

Kering’s results provide just the latest evidence that luxury sales are storming back from the pandemic as well-heeled shoppers crowd back into stores in much of the world. Rival LVMH SE last month reported record annual revenue, helped by surging demand for Louis Vuitton bags and Tiffany rings.

Analysts are also focusing on pricing power at luxury houses, with Chanel and other names increasing prices, citing inflationary pressures. In a call with reporters, Kering Chief Financial Officer Jean-Marc Duplaix said he expects more targeted price hikes for Gucci in 2022.

Kering’s recurring operating income for the year rose 60 percent to 5.02 billion euros, surpassing analysts’ 4.77 billion-euro estimate.

Read more: Louis Vuitton set to raise prices due to increased costs

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