What: The French luxury group reported a 2% rise in sales for Q1, largely falling behind its competitors LVMH and Hermès who saw double-digit increases in revenues.

Why it is important: The group will be focusing on its top-tier clients to help catch up with its competitors as Gucci, its top brand, is in a transitional year.

Sales for the first quarter totaled EUR 5.08 billion, increasing 1% compared to the same quarter in the previous year.

The group’s performance was mixed, as they work to enhance their brands’ appeal and increase their desirability.

At Gucci, organic sales were up 1%, compared to a 14% decrease in the previous three months. As the Italian luxury house is in a transformation phase, the group is elevating the brand through initiatives such as the launch of the Salon in LA and hosting an exhibition in Shanghai with humble ambitions for the year.

Bottega Veneta saw flat comparable sales in Q1 while Saint Laurent’s organic sales increased 8%. At other houses, sales were down 9% compared to a 4% drop in Q4 following the Balenciaga scandal.

The group’s luxury jewelry brands saw double digit growth, with Brioni performing exceptionally well.

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