Classy performance at Gucci
Fashion brand’s performance signals recovery in luxury sector
Fahsin brand Gucci has reported a 142.9 per cent increase in operating profit for the three months to the end of July , up to quarter to July surged to €65m, with sales up by 9.8 per cent to €641m.
Gucci, now wholly owned by French retail group Pinault Printemps Redoute, was boosted by higher sales in its Yves Saint Laurent brand as the luxury goods sector continues to show a recovery.
The group saw the strongest growth in Asia-Pacific markets, excluding Japan, where sales rose 30.5 per cent. Turnover in Japan was up 6.5 per cent, up by 18 per cent in the US, and 13.8 per cent in Europe.
The group said there was a healthy performance by all its main brands, with sales growth at Yves Saint Laurent driven by a sharp increase in retail sales at directly operated stores, up 54.5 per cent.
Serge Weinberg, chairman of the Pinault-Printemps-Redoute management board, said: “This quarter, during which PPR took operational control of Gucci Group, was marked by a sharp upward trend in both sales and profitability. This contrasts with the previous quarter’s results, which were notably affected by non-recurring items.
“This performance reflects the quality of our main brands and the significant potential for profitable growth of our Luxury Goods business within the ‘New PPR’. Robert Polet, CEO of Gucci Group, will present the development strategy for the Luxury Goods division before the end of the year.”
