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

Liquor and drugs boost Spar's sales
15/11/2018 - 15:07
Ireland was JSE-listed Spar’s best performing region, helping to offset sales and profit declines in Switzerland.

Woolworths to return to profit
15/11/2018 - 14:16
Woolworths will return to profit in the first half of its 2019 financial year following the loss caused by its R7bn impairment of Australian department store chain David Jones in the matching period.

Superbalist.com launches its Click and Collect service in time for peak season shopping
14/11/2018 - 16:09
Customers use the service by choosing “Collection” when they check out on the Superbalist website or app. They are provided a pin code via email and sms and take that to their chosen Takealot Pickup Point within 7 days of delivery - orders arrive within 2-4 days of purchase.

Retail sales growth half that forecast by economists
14/11/2018 - 14:09
Muted growth in the retail sector may be enough to help steer SA out of a recession.

Massmart battles one of the worst retail environments yet in SA
13/11/2018 - 14:10
Massmart, which is 51% owned by US giant Walmart, is battling one of the worst retail environments yet it has seen in SA, chair Kuseni Dlamini says.