Leading luxury goods company Kering Group today reported a +27% rise in Q1 revenue year-on-year (+21% on a comparable basis) to €4,956 million. Within this, management highlighted “spectacular” performances from Kering Eywear as well as houses Saint Laurent and Balenciaga.
Revenue from directly operated stores climbed +23% on a comparable basis year-on-year and up +32% relative to the same period in 2019. That growth was supported by “very strong momentum” in Western Europe, North America, and Japan. In Asia Pacific, sales were affected by recent lockdowns in major Chinese cities. Online sales continued to grow during the quarter and accounted for 15% of total direct sales.
Kering Eyewear sales reached €300 million, up by +36% on a comparable basis. The division showed good growth across all regions and channels, featuring key contribution from the Gucci and Cartier brands alongside the consolidation of the Lindberg brand.
As reported last month, Kering Eyewear has signed an agreement to acquire Hawaiian sunglasses and eyewear brand Maui Jim. The transaction is expected to be completed in the second half of 2022, subject to clearance by relevant authorities.
Chairman & CEO François-Henri Pinault said: “We opened 2022 on a very solid first quarter in a more uncertain environment, notably impacted by tightening Covid restrictions in China since March.
“All our Houses posted double-digit revenue growth in the quarter, with spectacular performances at Saint Laurent, our Other Houses, particularly Balenciaga, and Kering Eyewear. Bottega Veneta also delivered sharp higher sales on a more demanding base. Gucci’s strong showing in North America and Europe was overshadowed by its exposure to China, where we are boosting its organisation to fully capture the vitality of the market.
“While we remain attentive to economic and geopolitical conditions, we invest in all our brands, whose attractivity will continue to fuel our growth and profitability. Finally, I want to express my heartfelt sympathy, on behalf of all of us at Kering, to the people whose lives are affected by the war in Ukraine.”
Among other divisions, Gucci’s revenue in Q1 amounted to €2,591 million, an increase of +20% reported and +13% on a comparable basis.
Yves Saint Laurent had an exceptional start to the year with revenue of €739 million, up 43% as reported and up 37% on a comparable basis.
Bottega Veneta’s revenue hit €396 million in the first quarter, up +21% as reported and up +16% on a comparable basis, on a high comparison base. Relative to the first quarter of 2019, sales were up +59% on a comparable basis.
Kering’s Other Houses posted a strong first quarter, with revenue of €973 million, up +35% both reported and on a comparable basis.
