Italian luxury brand Gucci drives Kering H1 FY21 revenue up 53.3%

30 Jul '21

2 min read

Pic: Shutterstock

Gucci sales have jumped back to pre-pandemic levels in the first half (H1) of FY21 driving the revenue growth of Italian luxury group Kering up 53.3 per cent to €7,708.0 million against H1 FY20. Sales from directly operated stores accounted for around 80 per cent of the total revenue due to excellent momentum in North America and Asia-Pacific region.

“Kering delivered excellent performances in the first half and resumed its trajectory of strong, profitable growth. All our Houses contributed to a sharp rebound in total revenue, which comfortably exceeded its 2019 level, with a remarkable acceleration in the second quarter,” Francois-Henri Pinault, chairman and chief executive officer at Kering, said in a press release.

Kering’s online momentum continued to grow during the six-month period ended on June 30, 2021, with e-commerce revenue escalating 78.5 per cent year on year and representing 14 per cent of total retail sales, according to the company’s statement.

Sales of Gucci during the H1 FY21 surged 45.8 per cent to €4,479.3 million. Gucci’s directly operated store sales contributed 91 per cent of the group’s total revenue. However, in line with the brand’s strategy to transform its distribution which was implemented in early 2020, resulted in 9.6 per cent decline of wholesale revenues compared to H1 FY20.

Yves Saint Laurent's sales increased 53.3 per cent to €1,045.5 million against previous fiscal. Sales bounced back in all geographic regions, and particularly North America and Asia-Pacific, reflecting the ongoing success of both the House’s iconic lines and its new collections, the Italian group added.

Bottega Veneta’s revenue rose 40.6 per cent €707.6 million in H1 FY21 with wholesale revenue growing 44.6 per cent year on year, as the House gained market share in its highly exclusive network of third-party retailers.

Moreover, the group’s Other Houses rebounded sharply with revenue of €1,475.6 million, up 60.5 per cent against H1 FY20. Balenciaga and Alexander McQueen once again delivered outstanding performances, as did the jewellery houses, Kering said.

“While returning to substantial profitability and leveraging the desirability of our brands, we are stepping up the pace of our investments in our houses and strategic initiatives, notably to enhance the exclusivity and control of our distribution. Our teams are demonstrating their agility in this fast-moving environment, and we have the right assets, resources and strategy to successfully pursue our journey,” Pinault concluded in the release.

Fibre2Fashion News Desk (JL)

More Kering News... More Fashion News - Italy...