© Reuters. FILE PHOTO: Gucci products are displayed in the window of a store on Old Bond Street in London
PARIS (Reuters) – Sales at French luxury group Kering (PA:) rose by 26% in the first quarter of 2021, led by a strong rebound for its star label Gucci, with growth in Asia and the United States more than offsetting new coronavirus lockdowns in much of Europe.
Gucci, which accounts for just under 60% of Kering’s revenues and 80% of its profits, saw comparable revenues increase by 24.6%, ahead of an analyst consensus forecast for 19% growth.
Gucci had lagged behind rivals such as LVMH (PA:)’s Louis Vuitton and Hermes in 2020, fuelling investor concerns that it might be losing steam after five years of stellar growth.
Kering said the group’s sales rose by 83% in the Asia Pacific region and by 46% in the United States. E-commerce was also up sharply – with online sales now accounting for 14% of the total.
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