Following LVMH, Prada and Burberry, Kering Group (Kering) released the latest earnings. In the three months ended March 31, the Group recorded a revenue of 3.57 billion euros, up 31.2% year on year.
Revenue accounted for one-third of the Gucci contributed – organic sales of 1.35 billion euros, an increase of 48.3%, the highest record of 20 years. The Italian brand of direct store revenue increased by 51.4% year on year. Western Europe and the Asia-Pacific region recorded 66.4% and 63.1% year-on-year growth. Jean-Marc Duplaix, chief financial officer of Kaiyun, said at a meeting with analysts that Gucci is likely to finish the medium-term goal ahead of schedule and predict that the brand’s EBIT is expected to reach 30% this year.
“In view of Gucci in the creative rise, there is room for expansion, we have not yet reached its peak.” Jean-Marc Duplaix added that, for example, the current creative director Alessandro Michele in charge of Gucci design team after the first perfume, will be available this year.
However, he also admitted that the first quarter of 2016 sales were bleak, is affected by the European terrorist attacks. The denominator becomes smaller, the increase is naturally very gratifying, but “want to make a substantial increase in the next few years more and more difficult.” In addition, because Gucci transformation has ended, when the romantic and retro style brought freshness after the past, Gucci must return to the design itself, test Alessandro Michele creative strength came.