Advertise with fastmoving.co.za
 
 

Gucci designer Alessandro Michele’s crystal- and sequin-covered creations continued to light a fire under consumers in the holiday season.
Gucci designer Alessandro Michele’s crystal- and sequin-covered creations continued to light a fire under consumers in the holiday season.

Gucci overtakes Hermes as designer Michele seduces shoppers

RETAILER NEWS

By Robert Williams - Feb 13th, 11:25

Gucci designer Alessandro Michele’s crystal- and sequin-covered creations continued to light a fire under consumers in the holiday season.
 

The Italian fashion label closed out the year with another quarter of runaway growth, with comparable sales rising 45 percent in the fourth quarter, parent owner Kering SA said in a statement Tuesday. That drove Gucci’s revenue past that of rival Hermes.

Kering brands ranging from Saint Laurent and streetwear label Balenciaga joined Gucci in reaping the fruit of youth-focused reboots. Millennial shoppers have been leading the luxury industry’s rebound, with customers under the age of 35 making up 85 percent of growth last year, according to consultancy Bain & Co.

“We are continually impressed by the momentum at Gucci,” wrote Hermine de Bentzmann, an analyst at Raymond James.

The Italian brand’s efforts under designer Michele and CEO Marco Bizzarri since 2015 CEO have seen Gucci roar back after years of sluggish sales. Gucci had revenue of 6.2 billion euros ($7.6 billion) last year, while Hermes International had 5.5 billion euros.

“We have a new generation of designers who have a more global vision,” Chief Financial Officer Jean-Marc Duplaix said in a call with reporters. He says the creative chiefs worked on extending their aesthetic to everything from store decor to social media campaigns to events to offer clients an immersive experience.

Kering shares were little changed in early trading, having more than doubled in the past two years.

Last year Gucci attracted young shoppers through collaborations with Instagram poets and pop-up events where they could personalize their handbags with butterfly and flower motifs, as well as by extending Michele’s look to new categories like watches and ad campaigns for perfumes produced by licensee Coty.

Balenciaga continued to push logo hoodies and luxury sock sneakers while Saint Laurent splashed out on a Paris Fashion Week spectacle, strutting out thigh-high feather boots and sparkly warm-up jackets in a nighttime show framed by the Eiffel Tower.

Last month Kering took a step toward fulfilling its aim of becoming a pure player in luxury fashion when it proposed spinning off 70 percent of shares in German sportswear brand Puma to its own investors. Duplaix said investors will get 1 Puma share for every 12 of Kering.
©2018 Bloomberg 

Related News

Tesco reduces use of best before dates in a bid to cut food waste
22/05/2018 - 14:25
Tesco will remove best before dates on the packaging of nearly 70 of its fruit and vegetable lines as it aims to reduce food waste.

H&M looks to SA as potential clothing supplier
22/05/2018 - 14:12
H&M is looking at SA as a potential supplier, with executives from the world’s second-largest clothing retailer visiting some of the country’s main cities.

Woolworths Australia CEO resigns
22/05/2018 - 11:07
South African retail giant Woolworths said that it had discontinued the role of regional chief executive in its Australian operations in a bid to simplify the leadership structure in that country following a strategic cost review.

How technology is driving the millennial retail market
21/05/2018 - 15:13
Over the last decade, the retail industry has seen a shift in how it operates. The exponential increase in online shopping has had a significant impact on how we buy our products. Long gone are the days when purchasing items was done from Monday to Saturday, between a rigid office-hours timeline.

Pick n Pay brings more flavour and variety with new fresh offering
21/05/2018 - 13:41
Pick n Pay has relaunched its fresh offering, introducing both new product lines and new packaging, underpinned by its new fresh promise – Perfectly fresh, whatever it takes. The lines will offer something for all tastes and budgets and will be rolled out from this month.