Sales soar at luxury goods giant Kering

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In fashion: Sales at Gucci’s parent Kering have surged Giuseppe Cacace/AFP/Getty

Luxury goods powerhouse Kering has revealed its strongest sales growth since 2012, boosted by demand for Gucci handbags and collections from singer Rihanna.

The fashion giant praised “spectacular performances” in 2016 from Gucci, which put a brake on cutting prices in stores, and Yves Saint Laurent.

It also flagged growth in its Puma division, thanks to collections with Rihanna and sprinter Usain Bolt.

The firm was not immune to the luxury sector’s difficulties, including tourists shunning certain European cities over terror fears, and sales at leather goods division Bottega Veneta were down.

But full-year group revenue beat market forecasts, jumping 6.9% to €12.4 billion (£10.6 billion).

Pre-tax profits of €1.17 billion were up from €1 billion.

Boss François-Henri Pinault said the company outperformed peers: “We will keep concentrating on the organic growth of our houses [brands].”

Shares rose 2.2% in Paris following the update.

By Joanna Bourke Courtesy Evening Standard

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