French luxury giant Kering said on Tuesday first-quarter revenues increased 2 percent as reported and by 1 percent on a comparable basis, as sales growth resumed in the group’s Asia-Pacific region.
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The owner of Gucci, Bottega Veneta, and Saint Laurent brands said first-quarter revenue in the directly operated store network, including e-commerce, rose by 4 percent on a comparable basis, with all group houses contributing to the growth.
By region, the increase was driven by “good momentum” in Western Europe and Japan. While revenue was down in North America, Kering said sales growth resumed in Asia-Pacific, due to the gradual recovery of the Chinese market.
Wholesale and other revenue was down 10 percent on a comparable basis, as the group’s brands continue to reduce the share of wholesale in their distribution, said the Paris-based company in a press release.
By brand, Gucci revenue reached EUR 2.6 billion (USD 2.87 billion), an increase of 1 percent; Bottega Veneta gained 9 percent to EUR 806 million; and Bottega Veneta’s first-quarter revenue was stable year-on-year at EUR 395 million. The groups other houses segment, made up of Balenciaga, among others, fell 9 percent to EUR 890 million. Keying eyewear surged 11 percent to EUR 433 million.
“Kering’s performance in the first quarter remained mixed, as we had anticipated. As we work to augment the desirability of our brands and raise their profile in key markets, we are encouraged by the gradual improvement in activity month after month during the period,” said François-Henri Pinault, chairman and chief executive officer.
A host of initiatives undertaken by all our Houses to enhance their appeal and exclusivity lays the foundations for sustained, profitable growth.”