Gucci sales rise helps owner Kering to higher earnings
- 8 years ago
Gucci sales rose by five percent on a comparable basis in the final quarter of a year ago.
French luxury and sports brand group Kering said Creative Director Alessandro Michele's new collections, which were rolled out in stores in the autumn and brought a more romantic, vintage style, had been well received by critics and buyers.
Kering also owns brands such as Bottega Veneta and Yves Saint Laurent, but Gucci was its star performer.
The Milan-based business, known for its double-G logo handbags, had fallen out of favor with fashion-conscious consumers in recent years and faced slack demand in China where a crackdown on corruption has curbed the practice of exchanging gifts.
Its operating profit margin fell 3.7 percentage points year-on-year, and at 26.5 percent is still a long way off the group's longer-term 30 percent target, or the 31.5 percent it managed in the first half of 2014, when sales were shrinking.
French luxury and sports brand group Kering said Creative Director Alessandro Michele's new collections, which were rolled out in stores in the autumn and brought a more romantic, vintage style, had been well received by critics and buyers.
Kering also owns brands such as Bottega Veneta and Yves Saint Laurent, but Gucci was its star performer.
The Milan-based business, known for its double-G logo handbags, had fallen out of favor with fashion-conscious consumers in recent years and faced slack demand in China where a crackdown on corruption has curbed the practice of exchanging gifts.
Its operating profit margin fell 3.7 percentage points year-on-year, and at 26.5 percent is still a long way off the group's longer-term 30 percent target, or the 31.5 percent it managed in the first half of 2014, when sales were shrinking.