Kering Sees Q1 Revenues ‘Bounce Back’ Above Pre-Pandemic Levels
EDS: EMBARGOED UNTIL THE RESULTS ARE RELEASED AROUND 5:45 CET, I WILL ALERT JIM, ALEX AND THE COPY DESK ONCE THEY COME THROUGH
PARIS – Fueled by high double-digit momentum in Asia-Pacific and North America, Kering said first-quarter revenues bounced back above pre-pandemic levels, up 5.5 percent versus the first quarter of 2019.
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Star brand Gucci saw sales in the first three months of 2021 return to positive territory, jumping 24.6 percent in organic terms versus the first quarter of 2020 to 2.17 billion euros. Kering credited “the desirability of its collections, successful collaborations and multiple clienteling initiatives” for Gucci’s gains. Organic sales at the Italian megabrand were down 10.3 percent in the fourth quarter, spooking investors.
Consolidated revenues at the French luxury group, also the parent of Saint Laurent, Balenciaga and Boucheron, rose 25.8 percent on a comparable basis to 3.89 billion euros in Q1.
François-Henri Pinault, chairman and chief executive officer of Kering, trumpeted a strong top-line performance.
“Growth was consistent across all our houses, and we are particularly pleased with Gucci’s momentum as the brand kicks off its centennial celebration,” he said in a statement revealing the results, released after the closure of the Paris bourse. “While 2021 should still face some impact from the health crisis, the strategy, positioning and creativity of our houses will enable each one of them to thrive in today’s environment.”
Organic sales in the first quarter rose 23.4 percent at Saint Laurent, 24.6 percent at Bottega Veneta, and 33.1 percent at “other houses.” Of these, Kering highlighted “outstanding” growth at Alexander McQueen and Balenciaga, cited an “excellent quarter” for jewelry houses, which include Pomellato and Qeelin, and described “a good start to the year” for watch brands Ulysse Nardin and Gerard-Perregaux.
By region, sales surged 83 percent in Asia-Pacific and 46 percent in North America, while the online channel rocketed 108 percent to represent 14 percent of Kering’s retail sales.
By comparison, organic sales at LVMH Moët Hennessy Louis Vuitton’s key fashion and leather goods division rose 52 percent year-over-year in Q1, reflecting the resilience of its star brands Louis Vuitton and Dior. Compared with 2019, the division’s revenues were up 37 percent, a figure the financial community is likely to focus on as evidence of the luxury segment’s strength.
Hermès International is scheduled to report first-quarter results on April 22.
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