Kering announces plans to boost Gucci sales to 15 billion euros in the medium term

A Gucci logo is pictured at the Galeries Lafayette department store on Friedrichstrasse shopping boulevard, amid the coronavirus disease (COVID-19) pandemic during the lockdown in Berlin, Germany, January 22, 2021. REUTERS/Fabrizio Bensch

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PARIS, June 9 (Reuters) – French luxury group Kering (PRTP.PA) outlined plans to boost annual sales of its star brand Gucci to 15 billion euros over the medium term in slides released on Thursday after a presentation to investors.

Sales of Gucci, the group’s main brand and profit engine, totaled 9.73 billion euros in 2021.

The group expects to grow brand sales through a combination of increased store traffic, expanded store networks and higher prices.

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She plans to periodically raise prices and continue to increase the proportion of high-end products in her collections. Examples given in the slides included precious leather handbags, personalized shoes and fine jewelry – a product category introduced in 2019.

In China, the company said it will ramp up business through “stronger local execution,” particularly at the high end, while the US focus will include adding new stores while by reducing wholesale distribution.

Gucci’s profits nearly quadrupled and its revenues nearly tripled in the 2015-19 period, under the leadership of CEO Marco Bizzarri and creative director Alessandro Michele.

While much of the brand’s success until recently has relied on young, well-heeled Chinese shoppers heading to Europe’s fashion capitals and snapping up Michele’s quirky and flamboyant designs, since the pandemic it’s s is focused on raising awareness among local consumers.

Analysts said Wednesday that new targets for the smaller, fast-growing Yves Saint Laurent would likely prompt them to revise their estimates upwards. Read more

Gucci is under market scrutiny as it suffered more than rivals in a recent series of shutdowns in China.

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Reporting by Mimosa Spencer; edited by Jason Neely, Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.

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