Kering shares jump 11% on back of record first quarter sales
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Kering shares jump 11% on back of record first quarter sales

Kering, the luxury powerhouse behind Gucci and other brands, reported record sales for the first quarter that saw its share price rise by an incredible 11%. Revenue rose by 31.2% thanks to a 34% increase in sales (both from the previous year), setting a new record for the company. As a result, Kering’s share price made its biggest jump since October 2015.

Kering’s share price is up by an incredible 33% so far this year


SOURCE: Yahoo Finance

Kering said that its sales growth was down to “double-digit” increases across its product categories, citing an “ever-increasing demand for ready-to-wear and shoes,” and “excellent momentum” in leather goods as driving forces. Gucci was the outperformer across all regions and product categories, seeing a revenue growth of 51.4%.

Luxury goods analyst at Exane BNP Paribas, Luca Solca, said that the results were “beyond the rosiest buyside expectations” and described them as a “phenomenal beat” which would “push the share price to new heights.”

These results are part of a longer story, which has seen Gucci’s fortunes reverse over the past two years. They are also part of a wider phenomenon: the return of Chinese luxury consumption. Chinese shoppers count for a third of the global luxury retail market, and they are coming back from a slump that hurt luxury over the past year. Analysts at Citi describe an “industry-wide cyclical recovery in particular within the Chinese customer base both domestically and abroad.”

After Gucci, Yves St Laurent came a respectable second out of Kering’s brands, posting a revenue rise of 35.4% from the previous year, while sports and lifestyle brand Puma saw an increase of 17.9% in the same time frame.


Dominion holds Kering in its Global Trends Luxury Fund.  

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