Kering’s Pinault confident on Gucci’s growth, as group revenues up 35%
Gucci shoppers wait in line at Fifth Avenue, New York on Saturday May 22, 2021.
Victor J. Getty Images| Bloomberg | Getty Images
LONDON — The chief executive of French luxury group KeringGucci Fashion Label expects growth in the coming year following record sales for 2021.
Francois-Henri Pinault, speaking to CNBC Thursday, said that the fourth quarter of Gucci’s fiscal year had been “brilliant.” Kering parent reported that Gucci had earned 9.7 billion euros (or 11.02 billion dollars) in revenues, up 31% from 2020.
Kering published its 2021 full-year resultsReports on Thursday morning showed that revenue rose to 17.7 Billion Euros, more than a third higher than the year before. Luxurious goods company’s recurring operational income rose 60% to 5 billion euro, compared with 2020.
Luxury goods manufacturer said that revenue growth was due to “outstanding” performances from all of its fashion houses.
Kering shares rose 6.5% during London afternoon deals.
Pinault emphasized Gucci and said, “While the brand marked 100 years of existence,”ThLast year’s birthday, the label said that it was “still being developed.”
Kering CEO stated that Gucci’s launch last year of its new line brought “significant growth”, in the three final months of the year.
Pinault indicated that Gucci’s momentum for growth would be maintained through 2022 as well as the following years.
He stated, “We have a long-term vision of Gucci. It’s delivering what we expected. We will keep it going for certain.”
Pinault expressed more confidence about the future growth of luxury markets. He stated that people spent more on product than experience during the coronavirus epidemic, but growth was not limited to this.
He said that the number of people entering the luxury market was increasing in America and Asia.
Pinault stated that Kering looks at price before each collection is completed. This includes factors such inflation, duties on imports, as well as the exchange rate between different countries.
But he said pricing was an equally important factor because “important to know for a luxury brand” is that you must be vigilant in maintaining your exclusivity and your wantability moving forward.
These structural factors were causing the Kering average price to rise, he said.
Pinault indicated that Kering had a poor portfolio of brands and could improve its acquisitions. The group also stated that it was constantly looking for opportunities.
Pinault mentioned the possibility of Kering being in the metaverse. Kering discussed how the virtual realm could disrupt ecommerce and what opportunities there are for the growth of the group.
Kering is already exploring the area. Kering, for instance. Gucci has collaborated with animator SuperplasticTo create a series of non-fungible tokens.
Pinault stated that Kering is also investigating how cryptocurrency could be accepted as payment.