Luxury Group Kering's Sales Growth Surges Past Estimates

(IDEX Online) – Luxury goods group Kering SA reported first-quarter revenue significantly beyond analysts’ estimates, with fashion brands Gucci and Saint Laurent showing strong growth.

Comparable sales jumped almost 29 percent on the year – more than double the 13 percent rise forecast by analysts.

Revenue from its Watches & Jewellery brands climbed 13.1 percent on a comparable basis, with good performances at Boucheron and Pomellato, Kering said in a statement.

Gucci's sales soared 48 percent, putting in the strongest quarterly performance in more than two decades.

First-quarter sales jumped 31 percent to 3.57 billion euros, beating the 3.16 billion euros predicted by 16 analysts in a Bloomberg survey.

Rebounding demand in China and a turnaround in tourism in Europe boosted the luxury brand.

“In a climate of persistent geopolitical and macroeconomic uncertainties, our first quarter puts us in a particularly good position for the balance of the year,” said Kering CEO Francois-Henri Pinault. The first quarter benefited from “somewhat more favorable market conditions,” he added.