Gucci sales surged past pre-pandemic levels in the fourth quarter as luxury group
Gucci sales surged past pre-pandemic levels in the fourth quarter as luxury group Kering SAs biggest brand drew shoppers to its latest ready-to-wear collection.
Comparable revenue at Gucci rose 32% to 3.07 billion euros ($3.49 billion) in the period from the year before, Paris-based Kering said in a statement Thursday. Analysts had expected
growth of 18%.
The release in late September of Guccis 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 Kerings 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% during the quarter, outperforming all the groups other major brands.
We are confident we will extend last years momentum in 2022 and in coming years, Kerings billionaire chief executive officer, Francois-Henri Pinault, said in the statement.
Kerings 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.
Kerings recurring operating income for the year rose 60% to 5.02 billion euros, surpassing analysts 4.77 billion-euro estimate.
