Florence’s Gucci joins luxury goods rebound, buoys up Kering sales

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Florence’s Gucci joins luxury goods rebound, buoys up Kering sales

Gucci, the Florence, Italy-based luxury fashion house widely hailed for its high-end fashion and handbag items, had reported a 25 per cent revenue surge in the fiscal first quarter of the year, insanely topping analysts’ estimates as a growing sign of a bounce back in broader luxury goods’ demands alongside an ease of pandemic-led restrictions in top-tier markets likes of China and the United States bode well for the iconic fashion retailer.

In point of fact, while Gucci’s revenue surge over Q1, 2021 added to strong signs of a return in high-end fashion items likes of handbags, makeup alongside others, several industry analysts suggested that a block-buster reopening of economy in China and the United States alongside an acceleration in pandemic vaccination campaign had feathered up the French fashion conglomerate Kering-owned Gucci’s sales further.

On top of that, according to the century-old fashion retailer’s quarterly earnings’ report released earlier on Tuesday, the Kering conglomerate had witnessed a maverick rally at its sales, while Gucci that accounts for roughly 80 per cent of profits alongside 60 per cent of revenues of Kering, reported a growth of 24.6 per cent in revenues on first quarter of the year on a year-on-year basis, beating an analysts’ estimate of a growth of 19 per cent, data from Refinitv had unfurled.

Gucci reports 25% revenue-surge in first quarter

Besides, according to Gucci’s quarterly earnings’ report released earlier in the day, Kering had clocked an 83 per cent upsurge in sales in Asia Pacific region, while its sales grew by 46 per cent in the United States, though in the Western Europe, Kering sales faltered as much as by 34 per cent.

Aside from that, Kering’s overall revenues soared by 25.8 per cent in the latest quarter compared to the same time a year earlier, though Paris-listed Kering SA shares had wrapped up the day 2.20 per cent down to €626.10 apiece amid a gloomier sales outlook in Europe.