trending Market Intelligence /marketintelligence/en/news-insights/trending/tsh-ushxxx-tx-krzwlrba2 content esgSubNav
In This List

Kering's Gucci targeting €10B in annual revenue

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Kering's Gucci targeting €10B in annual revenue

Luxury group Kering SA's Italian brand Gucci said June 7 that it is targeting €10 billion in annual sales with a 40% EBIT margin, up from 2017's €6.2 billion in annual sales and 34% EBIT margin.

In a presentation to investors offered through Kering's website, Gucci said revenue growth would be driven by licensing, organic wholesale, leveraging travel retail, space increases, e-commerce, new store concepts, and retail key performance indicators, or KPIs.

In its physical retail operations, the brand plans to increase sales density in its existing store network and improve retail KPIs, and expand store space by 3% per year.

Meanwhile, Gucci will aim to triple e-commerce revenue by bolstering organic growth through higher penetration and enhanced customer experience. It also plans to roll out Gucci.com in new markets and establish tight cooperation with virtual concessionaires or e-tailers.

The brand also will look to double its licensing revenue through leveraging Kering Eyewear synergies, introducing new fragrances and developing its beauty category.

Gucci did not specify a timeframe to achieve its new sales target.

The move follows a robust 2017 performance by Gucci, which saw strong demand from millennials catapult sales to €6.21 billion from €4.38 billion in 2016 and Kering Chairman and CEO François-Henri Pinault described as "nothing short of spectacular."