Strong sales of luxury goods in China and other emerging markets drove an increase in growth at Gucci owner Kering Group this spring. Underlying sales rose 5.2% in the three months to June, up from 3.3% in the previous quarter as the French company's upmarket brands – including Yves Saint Laurent – were snapped up by shoppers in Asia and the US.
The Bottega Veneta brand was the fastest growing of Kering's major luxury labels, where sales rose 17.2% in the first quarter of the year. Growth at its smaller brands, which include British designer brands Alexander McQueen and Stella McCartney, was even stronger.
The figures provide further evidence of a booming luxury market, despite global economic difficulties, following strong figures from British label Burberry earlier this month. The fastest growth at Kering was in emerging markets such as China, where sales rose 19%. Sales of leather goods, such as handbags and wallets, rose 9% led by an "outstanding" performance in sales of items for men.
Growth at Kering's luxury brands helped offset a slump in sales and profits at its Puma sports brand in the second quarter. Underlying profits at the sports division dived by nearly a quarter in the half year but group profits rose 2.9% to €983m. Kering says it expects strong sales at its luxury labels to continue over the next six months as it opens new stores.