Kering Beats 1Q Sales Forecasts as Gucci Returns to Growth
By Joshua Kirby
Kering's sales grew above expectations in the first quarter as
leading brand Gucci returned to growth, the company said
Revenue at the French luxury-goods group grew 21% to 3.89
billion euros ($4.68 billion) compared with EUR3.20 billion in the
same period last year. The figure also represents an increase of
5.5% at constant exchange rates versus 2019's first quarter.
Analysts had expected Kering to post sales of EUR3.59 billion,
according to a FactSet-compiled consensus of four estimates.
The conglomerate's biggest brand, Gucci, posted sales of EUR2.17
billion--up 20% from EUR1.80 billion the year prior--having seen a
decline in the preceding quarter. Among Kering's other brands,
Bottega Veneta and Yves Saint Laurent also grew strongly on year,
at 20% and 19%, respectively.
E-commerce sales continued to increase, more than doubling on
year in the first quarter, while Asia-Pacific was the standout
region with 83% sales growth, Kering said.
Continued store closures and lack of tourism in Europe were
offset by a strengthening of relationships with local clientele, as
well as by strong growth in Asia-Pacific and North America, Kering
Chief Financial Officer Jean-Marc Duplaix said in a press call.
Write to Joshua Kirby at email@example.com;
(END) Dow Jones Newswires
April 20, 2021 12:01 ET (16:01 GMT)
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