Gucci owner sales soar above pre-pandemic levels  

The luxury brand owner's results provide more evidence that luxury sales are storming back from the pandemic as well-heeled shoppers crowd back into stores in much of the world

Lady Gaga attending the 'House of Gucci' UK premiere. The film drew more attention to the brand.

Kering shares rose the most since 2020 after sales at Gucci, the luxury group’s biggest brand, blew past pre-pandemic levels on demand for its latest collection.

A 32% jump in comparable revenue at Gucci during the fourth quarter was almost twice the increase analysts expected. The stock rose as much as 8%.

Kering’s results provide more evidence that luxury sales are storming back from the pandemic as well-heeled shoppers crowd back into stores in much of the world. 

LVMH, the world’s biggest luxury group, last month reported record annual revenue, helped by surging demand for Louis Vuitton bags and Tiffany rings.

“We are confident we will extend last year’s momentum in 2022 and in coming years,” Kering’s billionaire chief executive Francois-Henri Pinault said. 

The pricing power of luxury brands has cushioned the impact of rising costs for raw materials. 

Gucci will probably make targeted price hikes in 2022, after boosting prices twice last year and in 2020, Kering chief financial officer Jean-Marc Duplaix told reporters.

The release in late September of Gucci’s Aria ready-to-wear collection helped generate buzz, while the film House of Gucci, starring Lady Gaga, drew more attention to the brand. 

• Bloomberg