Image: Saint Laurent
Kering, the luxury multinational, has released its first quarter financial results for 2022, with the group’s sales increasing by 21% on a comparable basis to €4.96 billion. The parent company of Gucci, Saint Laurent, and Bottega Veneta reported double-digit growth in the first three months of the year for all of its fashion and jewelry companies.
Kering noted in a news statement that its sales increase was fueled by solid momentum in North America, Western Europe, and Japan. However, the results in the Asia-Pacific area were mixed, since new Covid-related lockdown restrictions prompted the business to close several of its outlets in important Chinese cities such as Shanghai.
“Gucci‘s good performance in North America and Europe was overshadowed by its exposure to China, where we are increasing its organization to fully exploit the vibrancy of the market,” François-Henri Pinault, chairman and CEO of Kering, said.
In the first quarter, revenue at the Italian house increased by 13.4% to €2.59 billion, compared to the same period previous year. Gucci’s sales have been fluctuating since the third quarter of 2021, when they increased by 3.8 percent thanks to the return of the delta variation. Gucci’s sales, on the other hand, increased by 32% in the fourth quarter of 2021. Analysts also stated that the brand’s growth is slowing.
Among the other brands, Saint Laurent had the largest increase. Its revenues increased by around 37.2 percent, above predictions of a 24 percent increase. The total revenue was €739 million. Kering’s chief financial officer, Jean-Marc Duplaix, credited the company’s excellent first quarter to its “clear approach on marketing and distribution.” He also mentioned that “Saint Laurent has always been successful with local clientele and is less reliant on tourist flows.”
Image: Saint Laurent
Bottega Veneta‘s revenues increased 16.3% to €396 million, according to Duplaix, owing to a “consistently implemented iconisation approach.” The company just debuted their Fall/Winter 2022 collection, which was directed by Matthieu Blazy, the brand’s new artistic director. With revenue of €973.4 million, the group claimed a 35% increase in the “other houses,” which include Balenciaga, Alexander McQueen, and Brioni in fashion and Boucheron, Pomellato, and Qeelin in jewelry.
“We started 2022 with a strong first quarter in a more uncertain environment, which has been impacted by China’s increasing Covid restrictions since March.” In the quarter, all of our Houses had double-digit sales growth, with exceptional results at Saint Laurent, our Other Houses, notably Balenciaga, and Kering Eyewear. “Bottega Veneta generated much greater sales on a more challenging foundation,” Pinault said of Kering’s first-quarter results.
“Gucci’s great performance in North America and Europe was overshadowed by its exposure to China, where we are expanding our operations to fully embrace the market’s energy. While we keep an eye on economic and geopolitical developments, we continue to invest in all of our brands, whose appeal will continue to drive our growth and profitability.”