Gucci‘s operating profits have quadrupled in the last 18 months, while revenues have more than tripled. This has led analysts and investors to wonder how long the brand can sustain these levels of growth, writes the Financial Times. According to Pinault, over time Gucci could surpass the sales of Louis Vuitton.
The biggest “Gucci on record” has meanwhile overtook another leading name of luxury, the French Hermès, which ended 2017 with sales growing 7 percent 5.45 bn euros. The brand has seen its grown ‘limited’ to a single digit increase unlike its double digit growth in 2016.
One reason Gucci has seen its sales surge is due to its growing online presence. Gucci saw its web traffic increase from 1.8M site visits in January ‘17 to 4.2M visits in December ‘17 – a 130 percent increase in web traffic, notes Forbes.
Gucci has already surpassed Louis Vuitton in online traffic, even if site visits do not necessarily mean conversions. According to Forbes, in December 2017 SimilarWeb tracked 4.2 million US visitors to Gucci.com, as compared with 2.9 million for LouisVuitton.com.
Interestingly, Gucci was named one of the three 2017 Momentum Award winners by SimilarWeb in the retail category, the only luxury brand to be so recognized. Gucci joins Uniqlo.com and Stitchfix.com as leaders in the online world of retail, based on the company’s algorithm measuring online traffic and engagement metrics.
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