After slowing down in the last three years, the Italian label owned by Kering is relying on new creative director Daniel Lee, whose first show is scheduled on February 22 in Milan, to return to growth.
The luxury group's leading label posted record results in 2018, and is expecting to grow at twice the market’s rate in 2019, reaching a 40% operating margin, as it prepares to launch a high jewellery line.
Luxury goods group Kering joined competitors in defying concerns of waning demand in China, as momentum at its powerhouse Gucci slowed slightly in the fourth quarter but still outperformed most other fashion brands.
Demand for Gucci handbags proved more resilient than expected in the third quarter, helping to drive a strong revenue rise at parent Kering at a time of heightened investor nerves over luxury goods companies.
Men and young millennial shoppers are the main drivers of a sales explosion at Balenciaga, with the storied couture firm turned edgy label now posting the fastest growth rates within the Kering group, its CEO has said.
While analysts have questioned whether consumers might tire of Gucci’s distinct look, the brand's 49% jump in Q1 sales indicates otherwise. Still, comparisons against its stellar performance in 2017 are growing tougher.
Gucci, Saint Laurent and Balenciaga all turned in powerful performances in Q3 for Kering but Bottega Veneta has some way to go. Gucci remains the conglomerate's star brand with both retail and wholesale soaring.