KER Kering

By Joshua Kirby

Kering's sales grew above expectations in the first quarter as leading brand Gucci returned to growth, the company said Tuesday.

Revenue at the French luxury-goods group grew 21% to 3.89 billion euros ($4.68 billion) compared with EUR3.20 billion in the same period last year. The figure also represents an increase of 5.5% at constant exchange rates versus 2019's first quarter.

Analysts had expected Kering to post sales of EUR3.59 billion, according to a FactSet-compiled consensus of four estimates.

The conglomerate's biggest brand, Gucci, posted sales of EUR2.17 billion--up 20% from EUR1.80 billion the year prior--having seen a decline in the preceding quarter. Among Kering's other brands, Bottega Veneta and Yves Saint Laurent also grew strongly on year, at 20% and 19%, respectively.

E-commerce sales continued to increase, more than doubling on year in the first quarter, while Asia-Pacific was the standout region with 83% sales growth, Kering said.

Continued store closures and lack of tourism in Europe were offset by a strengthening of relationships with local clientele, as well as by strong growth in Asia-Pacific and North America, Kering Chief Financial Officer Jean-Marc Duplaix said in a press call.

Write to Joshua Kirby at joshua.kirby@dowjones.com; @joshualeokirby

(END) Dow Jones Newswires

April 20, 2021 12:01 ET (16:01 GMT)

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