Soaring sales at Gucci pushed Kering's revenue above €15bn

Helen Cahill
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Strong sales growth at Gucci boosted Kering Group's sales above €15bn (£13.3bn) in 2017.

In the fourth quarter sales rose 27 per cent to €4.26bn, while annual revenues jumped 25 per cent to €15.5bn.

Sales at Gucci have been driving the group's success. For the year, Gucci's sales soared by 42 per cent, rising from €4.4bn to €6.2bn. Bottega Veneta, Yves Saint Laurent and the group's other luxury brands brought in €1.2bn, €1.5bn and €1.9bn respectively.

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Rogerio Fujimori, analyst at RBC Capital Markets, said Gucci had sustained strong sales growth against tough comparables. All of Kering's luxury brands grew ahead of analysts' expectations.

However, Fujimori added: "While we continue to view Kering as a core luxury holding, inevitable growth normalisation for Gucci, gradual pace of recovery for Bottega Veneta and relatively higher expectations than peers may cap the shares this year."

Francois-Henri Pinault, chairman and chief executive of Kering, said: "Kering delivered a phenomenal year in 2017.

"Gucci, whose performance was nothing short of spectacular, is amplifying its desirability across all markets. Saint Laurent is on a rapid growth track, while Bottega Veneta pursues its redeployment."

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