The luxury fashion owner Kering reported that it expects 2017 to be a “record” year. The company made the statement amid strong sales growth in China and Western Europe.
Kering is the owner of major fashion brands such as Gucci and Yves Saint Laurent (YSL). The company’s remarkable growth in the current year could be put down to the popularity of these two brands.
The European firm’s revenue has reached a record €3.9bn so far. The growth however seems to be continuing with more business coming in although the year is drawing to an end.
As of September end, the French firm’s revenue has grown by 23%. Despite this success, Kering has stated that the rising cost of the euro has affected its bottom line.
However, although the company claims that the euro has affected its overseas business, its growth prospects remain strong.
Commenting on the company’s success, its CFO Jean-Marc Duplaix said that the global environment still welcomed luxury goods. He added that Kering was “well-positioned” to continue “out-performing” its competitors in the industry.
Kering’s logic is certainly sound with analysts predicting that the luxury market is bound to grow. This growth can be credited to the strengthening of the global economy. This economy is certain to benefit major companies like Kering.
With brands such as Gucci to its name, it is sure to rake in huge monetary benefits. In the first quarter alone, Gucci’s brand revenue increased by 42%.
Under the leadership of designer Alessandro Michele, the brand has attained new heights. A major portion of this success comes from shoppers in China who account for over a third of the label’s sales.
However, high sales were also seen in the Asia-Pacific which noted a unit jump of 55%.
Reports state that a portion of this surge could be accounted to the launch of an e-commerce site in July 2017.