Kering aims to double Saint Laurent revenue to 5 billion euros / By Don – Alvin Adegeest
Building a 10 billion euro fashion powerhouse is probably the dream of every conglomerate and luxury brand CEO. Currently only a few have achieved these monumental figures or at least managed to nudge toward to the divine ten bn. These include Louis Vuitton, Chanel, Gucci and Hermès.
Kering on Wednesday said it aims to double the sales of Saint Laurent, hoping to achieve 5 billion euros in revenue in the medium term by 2026. The ambitious growth trajectory comes as no surprise, as last year in an interview with Vogue Business, CEO Francesca Bellettini quipped “when you are at 2 billion euros, to think of potential at 3 billion euros is too easy.”
Saint Laurent’s financial performance has been on an upward trajectory since 2013, back when it made a respectable 500 million euros in annual revenue. Sales have quadrupled in less than a decade with Anthony Vaccarello’s collections proving to be a hit with luxury shoppers.
While there is no litmus test for what makes a 10 billion euro fashion house, having equally strong ready-to-wear, accessories and beauty categories is key. As is having strong brand signifiers in the seasonal ranges, something Vaccarello has improved over his tenure.
Building a legacy over time
Kering said building the brand’s legacy over time as well as having a product offer ‘of the moment’ keeps desirability high. This is in addition to always elevating the brand and not compromising on image and positioning.
Currently Kering’s financial star brand remains Gucci, which contributes more than half of Kering’s total revenue and profit. While not yet nipping at Gucci’s heels, Saint Laurent is expected to consolidate its existing demographics, focusing on younger consumers. It aims to boost sales via local customers, who spend more per annum than revenue generated from tourism. The house will also open new stores around the globe and continue investment in APAC.
Saint Laurent posted revenue of 2.52 billion euros in 2021, up 46 percent from a year earlier. In 2019 e-commerce generated only 6 percent of the company’s sales, but grew exponentially to 18 percent in Q1 of 2022. Today, the 25-34 age group make up 39 percent of the brand’s demographic and women make up 76 percent of its audience. The growth plan is to foster youth while remaining appealing to other generations.