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Kering reports sales boost, Gucci revival in H1 2015

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The French luxury goods holding company reported a 17.8 per cent revenue increase from its luxury divisions’ activities in the first half of 2015.

This is an increase of 2.8 per cent from the first half of 2014 for Kering, whose portfolio of luxury brands includes Gucci, Bottega Veneta and Ulysse Nardin, among many others.

In a statement released on Tuesday (July 28), the group stated that its net income “more than doubled” this year, citing growth in luxury sales and the operations of a new creative management at Gucci, as the main drivers of the growth.

Gucci is the flagship luxury brand for the group, accounting for nearly one-third of its revenue. The marque reported a 4.6 per cent rise in sales during the second quarter of the year on a comparable basis, marking the first recorded growth for the brand in close to two years.

Sales at Gucci hit rock bottom during the first quarter of 2015, following the dismissal of Marco Patrizio and Frida Giannini, who until then held positions as CEO and creative director of the brand, respectively.

In the beginning of the year, Kering executive Marco Bizzarri became Gucci’s CEO and last April, the brand’s head accessories designer, Alessandro Michele, was promoted to the position of creative director.

Under the new management, François-Henri Pinault, CEO of Kering, promised to score rising sales, and he was right about it. “Our Luxury activities, lifted by sales in our directly operated stores across mature markets, continued on a strong upward trend, reflecting the relevance of our strategy and the action plans in place,” he said.

“We are particularly satisfied with the progress at Gucci and the positive reception given to the brand’s new creative direction,” added Pinault. “As we enter the second half of the year, I am fully confident in the group’s ability to combine strict management discipline with organic growth at each of our brands.”

The brand cited “higher tourist flows” as the main driver of its rising sales, in addition to benefitting from a weaker euro, which invited more purchases made by Asian consumers in Europe.

Moreover, Kering’s sport and lifestyle division, which includes Puma among other brands, recorded a 17 per cent increase in revenue, up 2.8 per cent from the same time period last year.

This article was first published on Aficionado, a sister title of Luxury MENA.

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