Gucci posts forecast-beating second-quarter organic sales growth of 7.4 percent
Kering Group’s flagship fashion brand Gucci on Thursday posted forecast-beating second-quarter organic sales growth of 7.4 percent, driven by solid demand for the brand’s new looks designed by Alessandro Michele, particularly in Western Europe.
In June, Gucci Chief Executive Marco Bizzarri had said that he expected the brand’s sales to have improved in the second quarter and to grow twice as fast as the wider luxury market in the medium term.
Kering said European consumers were the first to embrace Gucci’s new clothes and stores designs which were rolled out globally.
In June, Gucci stoked controversy by holding a fashion show in the cloisters of Westminster Abbey in London, the final resting place of Charles Dickens and Rudyard Kipling and the setting of every coronation since 1066.
Churchmen criticized the event in the media, arguing they believed it was wrong to use traditional sacred places for commercial purposes. But Westminster Abbey answered back it regularly hosted private venues and saw nothing wrong with letting in a fashion brand.
“The Gucci turnaround is working,” Exane BNP Paribas analyst Luca Solca said about the brand’s better-than-expected results.