A quarter of runaway growth

GUCCI surged past rival Hermes in sales as shoppers snapped up more of designer Alessandro Michele’s crystaland sequin-coated creations over the holidays. The Italian fashion label closed out the year with another quarter of runaway growth, with comparable sales rising 43 percent, parent Kering said yesterday. Its revenue of €6.2 billion (R91bn) last year surpassed the €5.5bn posted by Hermes International. Kering brands ranging from Saint Laurent to Balenciaga joined Gucci in reaping the fruit of youth-focused reboots. Millennial shoppers have been leading the luxury industry’s rebound, with customers under the age of 35 making up 85 percent of growth last year, according to consultancy Bain & Co. “We are continually impressed by the momentum at Gucci,” wrote Hermine de Bentzmann, an analyst at Raymond James. The Italian brand’s efforts under designer Michele and chief executive Marco Bizzarri have seen Gucci roar back after years of sluggish sales. That’s pushed it past Hermes, a more staid label that’s ridden rising demand for its high-end handbags, into second place.