With an increase of 27 percent, the French luxury goods group Kering was able to increase its sales by more than a quarter to almost five billion euros in the first quarter of this year. “All of our properties posted double-digit sales growth this quarter, with spectacular performances at Saint Laurent, our other properties, notably Balenciaga, and Kering Eyewear. Bottega Veneta also saw significant sales growth on a more sophisticated basis,” said François-Henri Pinault, Kering Chairman and CEO.
While markets in North America, Japan and Europe all grew, renewed lockdowns in some Chinese cities slowed growth in Asia Pacific towards the end of the quarter. Gucci in particular was affected by the restrictions, the company reports in its quarterly report.
As in previous quarters, online sales increased and now accounted for 15 percent of total sales for the quarter. Sales at directly operated stores increased 23 percent year-on-year on a comparable basis and 32 percent compared to the same period in 2019.
Yves Saint Laurent – extraordinary start to the year
In relation to the individual fashion houses, the Italian fashion house Gucci once again generated the largest share of sales with 2.59 billion euros, which corresponds to an increase of 20 percent on a reported basis and 13 percent on a comparable basis. Own-store sales increased 15 percent from the first quarter of 2021. Wholesale sales, which were streamlined as a result of the pandemic, fell 2 percent. The rationalization of this sales channel is now complete, it is said.
Yves Saint Laurent fared better, fueled by rapid growth in Western Europe and North America. The French fashion house had “an exceptional start to the year” with sales of 739 million euros, up 43% on the balance sheet and 37% on a like-for-like basis, according to Kering. Directly operated store sales grew strongly, up 49 percent on a like-for-like basis, with double-digit growth across all product categories. Wholesale sales, which are also being streamlined, increased 10 percent on a like-for-like basis.
The Italian luxury brand Bottega Veneta also contributed to the positive result. Revenue for the first quarter was EUR 396 million, up 16 percent on a like-for-like basis. Compared to the first quarter of 2019, revenue even increased by 59 percent on a comparable basis. The directly operated stores generated an 18 percent increase in sales, driven by very good sales in Western Europe, North America and Japan. Bottega Veneta’s wholesale business, which is also being optimized, achieved like-for-like sales growth of 10 percent.
Overall a good start to the year
Kering’s other fashion houses, the Balenciaga, Alexander McQueen and Brioni brands, also got off to a good start in the new year with a total increase in sales of 35 percent to 973 million euros. Each fashion house achieved double-digit growth, with directly operated store sales increasing 45 percent on a like-for-like basis, while wholesale sales increased 22 percent.
Kering Eyewear & Corporate sales for the first quarter were 308 million euros, including total Kering Eyewear sales of 300 million euros, an increase of 36 percent on a like-for-like basis.
Pinault does not make a forecast in view of the pandemic in China and the embargo on Russia. Pinault: “As we continue to closely monitor economic and geopolitical conditions, we are investing in all of our brands whose desirability will continue to fuel our growth and profitability.”