Gucci Parent Kering Rides eCommerce Explosion to Record Revenue in 2021

Gucci Parent Kering Sees Record Revenue in 2021

Online sales for Gucci parent company Kering were up 55% in 2021, a key driver in the company’s overall upward trend across its earnings results, according to a Thursday (Feb. 17) press release, which showed the company’s online penetration rates doubled since 2019 and are now 15% of its overall retail sales.

Kering’s revenue was 40% higher in 2021 than in the previous year and 18% higher than in 2019, the release stated. Fourth-quarter sales growth was up 39% compared to 2020 and grew 34% compared to 2019.

“Kering realized excellent performances in 2021, further consolidating its prominent position in the luxury of the future,” said Chairman and CEO François-Henri Pinault in the release. “Thanks to their ability to blend authenticity with bold creativity, all our Houses achieved sharp sales rebound, way beyond their 2019 levels, while reinforcing the exclusivity of their distribution and further enhancing their brand equity.”

Pinault said in the release Kering leadership is “working assiduously to meet our ambitious sustainability commitments,” noting that all parts of the company “are stronger than ever before, and we are confident we will extend last year’s momentum in 2022 and in coming years.”

Kering’s annual revenue was 17.6 billion euros (about $20 billion) for 2021, up 35% from 2020 and 13% from 2019. Recurring revenue was up 60% from 2020 to a record high of 5.017 billion euros (about $5.7 billion).

In May, a virtual Gucci bag originally sold for less than $6 began being resold for astronomically higher prices. At one point during the Gucci Garden Experience, it reached as high as $4,115. The average price for the purse eventually ended up at $1,578, slightly more than a physical Gucci bag.

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