A row of Gucci “Soho” baggage are mirrored in a glass show shelf inside a Gucci retailer in Rome.
Alessia Pierdomenico | Bloomberg | Getty Pictures
LONDON — The chief govt of French luxurious group Kering expects trend label Gucci to proceed to ship progress for the corporate this 12 months, following document revenues in 2021.
Chatting with CNBC on Thursday, Francois-Henri Pinault mentioned the fourth quarter for Gucci had been “good.” Dad or mum firm Kering reported that the enduring trend label had delivered revenues of 9.7 billion euros ($11.02 billion), up 31% on 2020.
Kering launched its 2021 full-year results on Thursday morning, reporting that revenues had jumped to 17.7 billion euros, up by greater than a 3rd on the earlier 12 months. The luxurious items group’s recurring working earnings jumped 60% versus 2020, topping 5 billion euros.
The luxurious items group mentioned income progress was pushed by “excellent” efficiency from all its trend homes.
Shares of Kering rose 6.5% throughout afternoon offers in London.
Focusing particularly on Gucci, Pinault mentioned that whereas the model marked its 100th birthday final 12 months, the label was “nonetheless being constructed.”
The launch of a brand new Gucci assortment final 12 months introduced in “important progress” within the ultimate three months of the 12 months, Kering’s CEO mentioned.
Pinault mentioned he believed Gucci’s progress momentum would proceed by means of 2022 and within the coming years.
“We’ve a really long-term imaginative and prescient for Gucci and it is delivering as anticipated and it’ll proceed for positive,” he mentioned.
Pinault was additionally assured concerning the progress of the luxurious market extra broadly. He mentioned that progress hadn’t simply been pushed by individuals spending more cash on merchandise than experiences amid the coronavirus pandemic.
The variety of prospects coming into the luxurious business was rising within the likes of Asia and America, he added.
Inflation and the metaverse
Addressing the difficulty of rising prices, Pinault mentioned that Kering considers worth at the start of every assortment, adjusting it primarily based on components like inflation, import duties and the overseas forex change scenario between nations.
Nonetheless, he added that pricing was additionally a structural consideration as a result of what’s “vital to know for a luxurious model is that the extra you develop, the extra you could watch out in protecting your exclusivity, your desirability going ahead.”
He mentioned that the common worth of Kering merchandise was going up for these structural causes.
On Wednesday, Reuters reported that fashion label Louis Vuitton, which sits below the rival LVMH group, deliberate to lift its costs because of rising manufacturing and transportation prices.
By way of acquisitions, Pinault mentioned Kering’s “portfolio of manufacturers shouldn’t be excellent, so I can enhance it considerably going ahead,” including that the group was all the time actively taking a look at alternatives.
Pinault additionally touched on the chance for Kering within the metaverse. He mentioned that Kering was contemplating how the digital world might probably disrupt e-commerce, in addition to the alternatives when it comes to the extension of the group’s merchandise.
Kering has already began to experiment within the area. For example, Gucci has collaborated with animator Superplastic to create a line of non-fungible tokens.
Pinault mentioned Kering was additionally trying into the way it might settle for cryptocurrency as a cost sooner or later.
