Gucci sales rebound to boost Kering profits

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By Euronews  with Reuters
Gucci sales rebound to boost Kering profits

The luxury goods market continues to hold up with Gucci’s parent company Kering reporting revenue last year increased by 15.4 percent.

Gucci, which accounts for nearly two-thirds of Kering’s profit, saw comparable sales rise by 4.8 percent in the final three months of 2015.

Kering – who’s brands include sports clothing line Puma, as well as Yves Saint Laurent and Bottega Veneta – said sales in Western Europe and Japan showed strong growth.

The French group credited Creative Director Alessandro Michele’snew collections, which were rolled out in stores in the autumn, for turning around Gucci.

“Kering [has beaten] top-line growth estimates and [this] shows that Gucci’s management is both expedient and on the right track,” Exane BNP Paribas analyst Luca Solca said.

“Gucci has come in with a significant number of new styles that are starting to turn heads – at the same time, it is benefiting from promotions on its former collections, in a repeat of the second-quarter pattern.”