Sales for Gucci, Bottega Venetta and YSL Parent Company Up 23%

PARISKering maintained its momentum in the third quarter despite tougher comparatives and a strengthening euro, buoyed by another stellar performance from Gucci and Yves Saint Laurent.

The parent of brands including Bottega Veneta, Brioni and Boucheron said group sales rose 23.2 percent to 3.92 billion euros ($4.6 billion) in the three months to Sept. 30, with sustained growth across all regions and through all distribution channels. In organic terms, revenues were up 28.4 percent in the quarter.

“Thanks to flawless execution of our strategies, at group level as well as in each of our brands, we delivered another quarter of outstanding growth,” François-Henri Pinault, chairman and CEO, said in a statement published after the market close on Tuesday.

“We will keep concentrating on organic growth, value creation and strict financial discipline. Facing unfavorable currency impacts and a tougher base of comparison, we remain fully confident in Kering’s ability to achieve a record year, fueled by sector-leading growth,” he added.

The figures come on the heels of a 13.6 percent rise in revenues at LVMH Moët Hennessy Louis Vuitton in the third quarter. Hermès International is scheduled to report sales for that period on Nov. 8, while Burberry is due to publish interim results for its fiscal first half the following day.

Gucci's renovated store in Milan.
Gucci’s renovated store in Milan.
CREDIT: Courtesy Photo

Kering’s luxury division as a whole, which also includes brands such as Balenciaga, Stella McCartney and Alexander McQueen, saw revenues increase 32.3 percent in organic terms. The sports and lifestyle division posted a 15.9 percent rise in the quarter, driven by a 17.3 percent hike in currency-adjusted sales at Puma.

Gucci, the French conglomerate’s cash-cow brand, has undergone a reinvention at the hands of creative director Alessandro Michele and CEO Marco Bizzarri.

Organic sales at the maker of Dionysus handbags and Princetown loafers rose 49.4 percent in the third quarter to 1.55 billion euros. This compared with 39.3 percent growth in the second quarter of this year and with a 17 percent increase in the third quarter of 2016.

Revenues in directly operated stores, which now account for 82.7 percent of the brand’s revenues, increased 50.9 percent across all nationalities and regions, while wholesale posted a 43.9 percent rise. All product categories enjoyed double-digit growth, Kering said.

Sales at Saint Laurent advanced 22.2 percent on a comparable basis, versus an increase of 23.7 percent in the previous quarter and a 33.9 percent jump in the same period last year. Revenues generated by directly operated stores progressed 21.1 percent in organic terms, while wholesale was up 23.4 percent.

Revenues for Kering’s other luxury brands increased 17 percent on a comparable basis. Couture and leather goods recorded a 19.3 percent rise, led by an “excellent” performance from Balenciaga, which the group has said is on track to reach sales of 1 billion euros in the medium term.

Online sales in the luxury division jumped by nearly 80 percent, with Gucci’s e-commerce posting triple-digit growth.

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