Kering produced stellar second-quarter results, led by Gucci, whose revenue jumped by just over 86 percent on a comparable basis. Shutterstock.
Sales at Gucci have soared above pre-pandemic levels as the Italian brand continues to lure young shoppers with its social media campaigns and benefit from easing lockdown restrictions.
Gucci revenue jumped by just over 86 percent on a comparable basis during the second quarter, owner Kering SA said in statement Tuesday. Analysts had expected a 77 percent gain. The performance at Gucci pushed total group revenue in the quarter up 11.2 percent from the same period in 2019.
Kering follows LVMH and Cartier owner Richemont in publishing stellar results as consumers across the world keep spending their savings accumulated during the worst of last year’s lockdowns on luxury handbags, shoes and jewellery. Like those companies, Kering was helped by an easy comparison with 2020, when many stores were shut.
Gucci’s rebound should bring comfort to investors who’d been worried about the steeper slowdown the brand suffered last year. That was in contrast to peers such as LVMH’s Louis Vuitton and Hermes, where revenue recovered strongly once the toughest restrictions had eased.
Gucci helped generate buzz by releasing a digital fashion show in April with sister brand Balenciaga. The 15-minute video, called Aria, featured equestrian helmets and boots, disco skirts and sequinned jackets with the brands’ logos.
Kering’s recurring operating income in the first half rose 135 percent to 2.24 billion euros ($2.65 billion). Analysts had expected 2.08 billion euros.
Gucci generated more than 80 percent of Kering’s total recurring operating income last year. The luxury-goods company’s over-reliance on its blockbuster brand has led analysts to wonder if Kering will put its financial power to use for a major acquisition, especially after a number of recent deals in the industry.
Chief Executive Officer Francois-Henri Pinault said in April that the company can afford to do one. Earlier this month, Kering made a smaller acquisition, announcing the purchase of eyewear brand Lindberg for undisclosed terms.
Kering has resumed its “trajectory of strong, profitable growth” following “a remarkable acceleration” in the quarter, Pinault said in the statement on Tuesday.
By Angelina Rascouet
The State of Gucci
Kering’s second-quarter results beat expectations despite the continued struggles in travel retail and wholesale.