Alessandro Michele boosts Gucci on top of Kering’s best selling brands

French luxury group Kering delivered a forecast-beating rise in first-half operating profit after a successful revival of its biggest brand, Italy’s Gucci, and a strong showing by fashion house Yves Saint Laurent reports Reuters.

Kering’s deputy CEO Jean-Francois Palus said on a call with analysts that Kering was not considering any acquisitions short-term whilst finance chief Jean-Marc Duplaix said the group will continue to reinvest in the Gucci brand to boost its communication and marketing as well as to further revamp stores.

As stated first-half recurring operating profit rose 57.1 percent to 1.274 billion euros ($1.49 billion), with an operating margin at Gucci reaching a record 32 percent of sales.

“Gucci, under the leadership of designer Alessandro Michele and Chief Executive Marco Bizzarri since early 2015, has revamped its stores and adopted a new luxury aesthetic that has proved popular with customers, notably millenials. Second quarter comparable sales at Gucci, which makes over 60 percent of Kering’s profit and whose products are endorsed by celebrities such as singer Rihanna, rose 39.3 percent, beating analysts’ expectations of 32 percent growth” Reuters reports.

“The enthusiasm for the brand is quite intense” commented Duplaix on Gucci’s stellar performance. Yves Saint Laurent, which accounts for over 10 percent of Kering’s luxury sales, posted comparable sales growth of 23.7 percent in the second quarter, with new designer Anthony Vaccarello at the helm since April 2016. Sales at Bottega Veneta rose 1.7 percent, pursing a rebound started in the first quarter thanks to improving tourism spending in Europe and also stronger demand in Asia.