The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Kering SA rose after the luxury company’s white-hot Gucci brand kept up its relentless growth pace at the start of the year, with online sales more than doubling in the first quarter.
The Paris-based company’s shares rose as much as 6.1 percent early Wednesday after it said comparable sales grew 37 percent in first quarter. Analysts had expected a 23 percent increase.
Designer Alessandro Michele’s crystal- and flower-coated reboot of Gucci has won over young luxury shoppers. After a more than 70 percent gain in Kering’s shares over the past 12 months, investors have been watching to see how long the Italian label can maintain its rapid growth. The latest results show that this year’s collaborations with hip artists and a runway show in which models carried props like baby dragons continue to resonate with fans.
“Gucci’s superiority to luxury peers seems set to dominate for several quarters more,†Bloomberg Intelligence analyst Deborah Aitken said in emailed comments.
The company has benefited from surging Chinese demand for luxury goods, which has also lifted the fortunes of LVMH and other rivals. Gucci’s online sales gains were led by the US, Kering said.
Kering sped up progress towards becoming a luxury-only group this quarter when it announced plans to spin off its shares in German sportswear maker Puma SE.