Thursday 29 September 2016

Gucci handbags are flying off the shelves, with sales rising by 7pc

Pascale Denis

Published 05/06/2016 | 02:30

A Gucci Dionysus bag
A Gucci Dionysus bag

French luxury group Kering's flagship Gucci brand has seen strong sales growth since March and expects to be able to grow more than twice as fast as the wider luxury market over the medium term, the company said.

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"In March, we saw very strong growth in products sold at their full price, including handbags, and this trend has increased in April and May," said new Gucci CEO Marco Bizarri in London last week.

Bizarri, the former head of handbag maker Bottega Veneta, was put in charge of Gucci in early 2015 and pushed through a style overhaul under designer Alessandro Michele, which has ended two years of falling sales.

Gucci believes that over the medium term its new image will allow it to grow more than twice as fast as the luxury market, which Bain & Co expects will grow by 2pc to 3pc.

In slides released on Friday, Gucci also said it was targeting €6bn in sales over the long term, compared with €3.89bn last year.

Bizarri said sales in renovated stores had seen double-digit growth since March. He said demand growth was very strong in Europe, the US and China and sales in its Paris stores were up 10pc since January, despite the November attacks that scared off some tourists.

Sales of handbags at full price are up 7pc since January, ready-to-wear sales are up 66pc and shoes sales are up 46pc, according to figures released at an investor day on Friday.

Bizarri said that Gucci wants to attract new clients, notably the fickle and ultra-connected 'millennials', and has broadened its range with entry-level leather goods, jewellery and scarves.

Sunday Indo Business

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