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(Bloomberg) -- Kering SA rose to a record in Paris trading after a stellar performance from the Gucci brand helped first-quarter sales surge beyond analysts’ estimates.
The shares gained as much as 11 percent to 288 euros, the steepest intraday advance since October 2015. They’ve risen 90 percent in the past year.
Gucci’s first-quarter comparable sales rose 48 percent from a year earlier, the strongest growth in more than two decades. A revamp of the label and similar progress at the Yves Saint Laurent brand has helped Kering outpace its most formidable peers as rebounding demand in China and a revival of European tourism have boosted luxury brands.
“Gucci is currently one of the most in-fashion brands,” Mario Ortelli, an analyst at Sanford C. Bernstein, said in a note. “We expect the Gucci turnaround to continue for at least another quarter as the brand momentum continues.”
Kering’s comparable sales increased 28.6 percent from a year earlier, the Paris-based fashion group said Tuesday after markets closed, compared with the 13.3 percent rise anticipated by analysts. The gains clearly surpassing those of competitors including LVMH, whose billionaire owner Bernard Arnault on Tuesday moved to consolidate control over Christian Dior for about 12.1 billion euros ($13.2 billion).
Gucci was the quarter’s standout performer. The label’s CEO Marco Bizzarri and creative director Alessandro Michele have reinvigorated the brand, Kering’s largest, with a whimsical new product offer and raised its profile online.
“Gucci’s new aesthetic from Alessandro Michele continues to be very appealing among luxury consumers,” Rogerio Fujimori, an analyst at RBC Europe, said in a note.
Yves Saint Laurent’s comparable revenue climbed 33 percent. Waiting lists at the label are reportedly mounting for items from the first collection by new artistic director Anthony Vaccarello, which arrived in stores in January. The collection “remained faithful to the DNA of Saint Laurent,” but also included hot new bestsellers, Chief Financial Officer Jean-Marc Duplaix said on a conference call.
Bottega Veneta surprised analysts by returning to growth. Sales gained 2.3 percent on a comparable basis. Shoes, especially women’s models, remained in high demand, the company said.
In addition to the rapid growth in its core luxury brands, Kering benefited from a turnaround at German sports-apparel maker Puma SE, which reported its highest-ever quarterly sales earlier on Tuesday.
Kering’s total first-quarter sales climbed 31 percent to 3.57 billion euros, beating the 3.16 billion euros predicted by 16 analysts in a Bloomberg survey.
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