Kering delivered a record 28.6 percent increase in first-quarter sales on Tuesday, as a revival of Gucci accelerated sales and Yves Saint Laurent's performance was stronger than expected. Kering's strong sales "provided further evidence of a recovery in the wider luxury market, partly in response to a rebound in China's appetite for luxury fashions after a slowdown," says Reuters.
First-quarter sales at Gucci, "which makes over 60 percent of Kering's profit, rose 48.3 percent, with all products and regions contributing to the rise. They beat analysts' expectations of 21.4 percent growth. Under the leadership of designer Alessandro Michele and Chief Executive Marco Bizzarri since early 2015, Gucci has revamped its stores and adopted a new luxury aesthetic that has proved popular with customers," according to Reuters.
"We are seeing a very strong appetite from the public for Michele's collections," Kering's chief finance officer Jean-Marc said in a conference call this week, also highlighting the Dionysus bag as a popular product.
Yves Saint Laurent, which accounts for over 10 percent of Kering's luxury sales, posted growth of 33.4 percent, with new designer Anthony Vaccarello at the helm since April 2016, also beating expectations of 19 percent growth. Duplaix went so far as to say that there were waiting lists for some products at Yves Saint Laurent.