Italian luxury fashion house Gucci under the Kering umbrella said on Thursday that it targets to surpass a sales figure of 10 billion euros (11.8 billion dollars) in annual sales and replace LVMH’s Louis Vuitton as the biggest global luxury label.

Financial Times quoted, Gucci’s Chief Executive Marco Bizzarri, saying “I don’t think these are unobtainable targets. Gucci will reach the goal sooner rather than later. We’re in the same league...The question is not if, but when.” He was speaking to the media and analysts at an investor day meet in Florence.

Gucci keeping its pace of growth

In its first quarter update, Kering said, Gucci had another excellent quarter across the board, posting revenue of 1,866.6 million euros (2,204.4 million dollars), up 37.9 percent as reported and 48.7 percent on a comparable basis. And for the fiscal year 2017, Gucci, the company said, outperformed the market, with revenue topping the 6 billion euros (7 billion dollars) mark for the first time, up 41.9 percent reported and 44.6 percent on a comparable basis.

In a presentation to investors, the report added, Bizzarri said: “Gucci, which made about 6 billion euros of sales in 2017, would keep its pace of growth by converting the rest of its store network to the new Gucci image, increasing store space by 3 percent and tripling its ecommerce. The Kering-owned group will also unveil new perfume and beauty product lines later in 2019.”

According to a report by consultancy firm Bain & Company, the luxury industry, fuelled by Chinese demand, is expected to pick up pace in 2018, with global revenues forecast to expand by 4 to 5 percent at constant currencies increasing the market size to 366 euros to 390 billion euros (431.9 to 460 billion dollars).

Picture:Facebook/Gucci