According to the first half of the financial year, in recent years the vibrant Gucci has surpassed Hermes in terms of revenue. On July 26, French local time, the parent company of Gucci Kaiyun Group released its mid-2018 earnings report. Statistics show that Gucci’s annual sales rose 44.1% to 3.853 billion euros in the first half of this year, up from 43% in the same period of last year, while its operating profit rose 62.1% to 1.47 billion euros, with an operating profit margin reaching a record high of 38.2%. Sales in the second quarter rose 40% to 19.9 billion from a year earlier, which has been Gucci’s six consecutive quarters to maintain more than 35% sales growth.
Apart from Gucci taking the lead, Kai Yun’s other luxury brands also performed well. At a constant exchange rate, Yves Saint Laurent’s sales grew 19.7% year-on-year, but Paudia’s sales fell 0.9% year-on-year, with second-quarter sales down 2.3% year-on-year, while sales of other luxury brands rose 36.5% year-on-year, largely thanks to the accelerated growth of Paris Family and Alexander McQueen. Paris family has become a fast growing brand, with annual sales approaching 1 billion euros.
Over the past six months, Kaiyun has been actively stripping its other brands to create a more core luxury group image. Including the split of Puma, a German sports brand, to shareholders in January; the sale of 50% of its British designer brand Stella McCartney to designers in March; the sale of Volcom, a non-luxury California outdoor sport brand, in April; and the planned holding of Christopher Kan, a British designer brand, in June. E51%’s shares are sold back to the designer himself.