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New brands, styles drive Gucci sales forward

Sales surges in Western Europe and Japan helped Gucci's bottom line in Q4.

February 19, 2016

Sales surges in Western Europe and Japan helped Gucci's bottom line in Q4 and the high-end fashion brand is attributing the results to new collections.

Comparable sales increased 5 percent at the end of 2015 which exceeded market predictions of 2 to 3 percent, according to a Reuters report. The sales spike was the result of new collections featuring a more vintage style from new creative director Alessandro Michele, according to Gucci's parent company Kering.

Gucci recently completed renovating many of its flagship stores and market watchers say its new brands and clothing styles introduced reveal the company is on firm ground.

"Kering (has beaten) top-line growth estimates and (this) shows that Gucci's management is both expedient and on the right track," Exane BNP Paribas analyst Luca Solca told Reuters. "Gucci has come in with a significant number of new styles that are starting to turn heads — at the same time, it is benefiting from promotions on its former collections, in a repeat of the second-quarter pattern."