Kering is enjoying its most profitable year on record, as Gucci closed 2017 with another quarter of runaway growth. The Italian fashion label saw comparable sales rising 45 per cent in the fourth quarter, says owner Kering. That’s helped drive the Paris-based company to its most profitable year on record.
Millennial shoppers have been at the forefront of rebounding sales in the luxury industry, with customers under the age of 35 making up 85 per cent of growth last year. Recurring operating profit rose 56 per cent last year to €2.95 billion as Kering brands including Saint Laurentand street wear label Balenciaga joined Gucci in reaping the fruit of youth-focused reboots.
Overall revenues at Kering rose to €4.26 billion euros ($5.25 billion) in the fourth quarter, up 27.4 per cent year-on-year on a comparable basis, which strips out acquisitions and currency swings. That marked a slight slowdown from the 28.4 per cent growth notched up in the previous three months but beat forecasts.
Kering posted a 56.3 per cent rise in adjusted operating income to €2.95 billion for 2017 as a whole, also beating forecasts, while full year revenues rose 27.2 per cent on a comparable basis to €15.48 billion.