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 The Italian brand, which represents the bulk of valuation for parent
Kering <PRTP.PA>, on Thursday posted a 0.3 percent rise in
like-for-like sales for the first quarter, broadly in line with
analysts' expectations.
In a conference call with journalists, Kering Finance Director
Jean-Marc Duplaix said Gucci's sales in China were still declining,
without providing figures, but added that "trends are improving".
Gucci still makes more than 20 percent of its turnover from
wholesale buyers, whose contribution to comparable sales dropped 19
percent in the first quarter after some accounts with department
stores ended. Revenue from directly operated stores was up 6 percent
on a like-for-like basis.
Kering said it had noted a drop in demand from Russian and Ukrainian
customers due to the crisis in Ukraine but stressed that clients
from these countries made up only 4 percent of total sales.
Gucci, which already saw its sales stall in the fourth quarter,
continued to underperform arch-rival Louis Vuitton, owned by
industry leader LVMH <LVMH.PA>, which posted comparable sales growth
of close to 9 percent in the first quarter.
Meanwhile, Britain's Burberry <BRBY.L> posted strong revenue growth
for the first few months of the year, driven by solid demand in
Asia.
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Overall, Kering's total quarterly luxury sales rose 6.3 percent to
1.6 billion euros ($2.21 billion) while revenue from the group's
Puma sports brand fell 0.4 percent on a comparative basis and 6.6
percent on a reported basis.
Puma, which is suffering from lackluster demand in Europe, its
biggest market, has been undergoing a deep restructuring and
strategy change under new management which is taking time to yield
results.
Kering on Thursday also announced a reorganization of its luxury
activities with the creation of three divisions to better manage its
brands.
($1 = 0.7236 euros)
(Editing by James Regan)
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