Gucci Has Done So Well, Its Finance Chief Is Tamping Down Expectations

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PARIS—American customers helped Gucci begin off the yr with a bang.

Income on the Italian style home rose 38% within the first quarter to €1.87 billion ($2.three billion),


KER zero.44%

Gucci’s company mother or father, stated Tuesday. Excluding the impact of a stronger euro, income rose 49%.

Gross sales in North America, primarily the U.S., led the way in which, rising 64%, Kering stated. The outcomes mark one other quarter of sturdy development for Gucci, which has turn into the world’s second-largest luxurious model by gross sales, surpassing Hermès and behind solely Louis Vuitton.

Buyers have been looking forward to indicators of customers cooling on Gucci, however Tuesday’s outcomes give no indication of that occuring. The model recorded one among its highest development charges, adjusted for forex results, of the final three years.

Gucci carried out effectively within the U.S. amongst vacationers and locals, in retail, shops and on-line, stated

Jean-Marc Duplaix,

Kering’s chief monetary officer.

“All this with out opening new shops,” Mr. Duplaix stated.

The quarter noticed Gucci pull off a coup with its Milan style present. Gucci artistic director

Alessandro Michele

doubled down on the eccentric designs which have catapulted the model into the highest ranks of luxurious style. In February, fashions strode down the runway carrying child dragons and replicas of their heads; they wore garments with Medieval and Renaissance prospers that had been emblazoned with the logos of the New York Yankees and the San Francisco Giants. Tribe Dynamics, which tracks on-line buzz, stated the present helped make Gucci the top-mentioned model on social media in February.

Mr. Duplaix sought to tamp down expectations that Gucci can keep such exceptionally sturdy development charges, a chorus heard repeatedly from Kering executives earlier than earlier rounds of glowing outcomes. Within the second half of final yr, a restoration in Chinese language luxurious consumption gathered momentum, making excessive year-over-year development charges tougher to attain, he stated.

“Because the yr progresses, we should always see a normalization of development,” Mr. Duplaix stated.

Kering’s different massive manufacturers—Saint Laurent and Bottega Veneta—registered considerably decrease development charges, widening the gulf between Gucci and the conglomerate’s different labels. Saint Laurent income rose 12% to €408 million. Income at Bottega Veneta sank 6%, although it ticked up zero.7% excluding the power of the euro.

Kering’s total income rose 27% to €three.1 billion. Tuesday’s outcomes mark the primary time that the conglomerate reported outcomes with out German sportswear firm


. In January, Kering moved to shed most of its controlling stake within the firm, saying a plan to distribute 70% of Puma’s shares to Kering shareholders.

Write to Matthew Dalton at

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