The French luxury goods group Kering SA outlined the ambitions of its main brands Gucci and Yves Saint Laurent during its capital market days on Wednesday and Thursday. There are therefore ambitious growth targets for both fashion houses: At Yves Saint Laurent, sales of 2.5 billion euros in the past financial year 2021 are to be doubled to five billion euros in the “medium term”. The group also wants to increase Gucci’s revenues, which last amounted to 9.7 billion euros, to 15 billion euros in the medium term.
The group did not name a specific time frame for the announced growth. The current challenges, such as the possible consequences of the Ukraine war on the geopolitical and economic situation, did not play a major role in the plans presented. Rather, general strategic cornerstones were presented. At Yves Saint Laurent, for example, the leading position in the leather goods division with the highest turnover is to be consolidated and the potential for growth in the shoe and men’s fashion categories is to be exploited. In regional terms, business in Asia in particular is considered to be particularly promising. However, the company also emphasized the “continued high relevance” of the markets in Europe and America. In the future, it wants to strengthen business with local customers in particular. In general, the fashion house relies on the expansion of its own stationary and digital retail trade, the importance of which should continue to grow at the expense of the wholesale business.
Many strategic priorities are similar at Gucci: Here, too, the company’s own retail business is to be further promoted with new boutiques and online initiatives, and the share of sales from the wholesale business is to be further reduced. The parent company currently sees growth opportunities in Europe and America, where it intends to exploit the brand’s “full potential”. In the important China business, however, there is a need for reform, which a new local management team should manage. Kering is also hoping for disproportionate growth in men’s products at Gucci. In addition, younger target groups are to be addressed to a greater extent.