Gucci’s 100th anniversary rebound: as Covid-19 lockdowns ease, shoppers ‘revenge spend’ on luxury fashion and jewellery, with Cartier owner Richemont bouncing back too

Sales at Gucci soared above pre-pandemic levels as the Italian brand lures young shoppers with its social media campaigns and benefits from easing lockdown restrictions.

Gucci revenue jumped 86 per cent on a comparable basis during the second quarter, owner Kering SA said in a statement Tuesday, July 27. Analysts had expected a 77 per cent gain. The performance at Gucci pushed total group revenue in the quarter up 11.2 per cent from the same period in 2019.

“Performance in the first half is excellent, be it on revenue, but also on the profitability side,” chief financial officer Jean-Marc Duplaix said in a press call, noting particularly good results in Asia Pacific and North America. Kering is “confident” that Gucci’s profitability can improve even further.

During a call with analysts, Duplaix said Kering raised some prices on Gucci and Bottega Veneta products in the past year – a sign that consumers are willing to pay more for the brands.

The rebound at Gucci, which is marking its 100th anniversary, should bring comfort to investors who’d been worried about the steeper slowdown the brand suffered last year. That was in contrast to peers such as LVMH’s Louis Vuitton and Hermès, where revenue recovered strongly once the toughest restrictions had eased.

Gucci helped generate buzz by releasing a digital fashion show in April with sister brand Balenciaga. The 15-minute video, called Aria, featured equestrian helmets and boots, disco skirts and sequinned jackets with the brands’ logos. The Aria collection will hit stores in the second half, Duplaix added.