Gucci owner Kering has recently indicated that it is aiming to expand further into U.S. cities following the pandemic slump and a sales surge for luxury goods, despite current inflation indicators. The luxury industry has rebounded from the pandemic, with sales now exceeding the pre-crisis levels. For Kering, their operating subsidiary Gucci has accounted for much of their rebound, with the label accounting for 60% of its total revenues and 70% of total profits. Year-over-year operating income has also reached record highs of 5 billion euros ($5.7 billion USD).
Kering’s Chairman Francois-Henri Pinault made mention of acquisitions in the near future, with competitors such as Louis Vuitton making more U.S. acquisitions in the luxury space to break into cities with increasing populations such as Austin and Nashville. The diversification of its current portfolio through future acquisition activities is not subject only to Kering, but other luxury brands trying to capitalize on the post-pandemic sales increases and new markets.
Read more here: https://www.reuters.com/business/retail-consumer/gucci-powers-forecast-beating-sales-growth-kering-2022-02-17/
