Sales of French luxury group Kering nearly doubled in the second quarter. Comparable revenues rose by 95 per cent in the three months to end-June compared with a year ago, and were 11 per cent higher than their pre-pandemic 2019 levels. Growth was driven by North America, where retail sales were up by more than 260 per cent, and Asia. Gucci sales grew by 86 per cent over the period and account for more than half of the group’s revenues and 76 per cent of its operating profit. Fashion label Gucci is the star at Kering.
Kering will continue to invest and support its brands in the second half of the year but this would not come at the expense of profitability. While returning to substantial profitability, and leveraging the desirability of its brands, Kering is stepping up the pace of its investments in brands and strategic initiatives, notably to enhance the exclusivity and control of distribution. Kering has reached 88 per cent traceability for key raw materials and aims to increase the share to 100 per cent by 2025.
Gucci is celebrating its centenary year, keeping the buzz around the brand high with events and new collections, including one presented in April where Gucci designs were crossed with silhouettes and logos by Balenciaga, another Kering brand.