Gucci Can Reach $16 Billion in Sales in Medium Term, Kering Says
09 Juni 2022 - 02:38PM
Dow Jones News
By Joshua Kirby
Kering said Thursday that it is aiming for core brand Gucci to
up its revenue and profitability in the coming years, with growth
driven by better sales density and higher retail and online
sales.
The French luxury-goods group's aim is for Gucci to reach 15
billion euros ($16.1 billion) in sales in the medium term, it said
during a capital-markets event Thursday. Other ambitions include an
operating margin above 41%, Kering said.
In 2021, Gucci made revenue of EUR9.37 billion, more than half
of Kering's total turnover of EUR17.65 billion, with an operating
margin of 38.2%.
Revenue growth should be driven by higher traffic and new
clients, notably men and high-income consumers, as well as by price
increases and expansion of the store network, Kering said.
Sales density should increase by some 30% compared with 2021,
the company said, adding that the brand aims to reduce wholesale
sales to 6% compared with 9% last year and to boost e-commerce
sales to some 16%-18% of the total.
Expansion in the brand's operating margin will meanwhile come
through optimization of the gross margin, sustained brand
investment and leverage of operational spending, Kering said.
Capital expenditure should stay around 3% of total revenue, it
added.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
June 09, 2022 08:23 ET (12:23 GMT)
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