Gucci’s sales growth remains sluggish in Q1

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A woman holding an umbrella walks past a company logo of a Gucci boutigue outside a shopping mall amid rainfalls in central GuangzhouBy Astrid Wendlandt PARIS (Reuters) – Gucci’s sales growth remained sluggish in the first three months of the year, hit in part by the brand’s upmarket repositioning and the clean-up of its wholesale distribution network. The Italian brand, which represents the bulk of valuation for parent Kering , 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.

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