PARIS (Reuters) - Kering (PRTP.PA) shares rose to record highs on Wednesday after booming first quarter sales growth at the French luxury company, as red-hot demand for its Gucci clothing and handbags was joined by other labels such as Balenciaga.
Kering shares were up 5.7 percent at around 464 euros in early session trading, touching new record highs.
“Shorter term, we expect further operating leverage and the group should see solid Q2 growth, benefitting from the easiest comparison of the year; longer term, we believe Kering has a portfolio of brands that offer growth potential far above the sector average,” wrote Barclays analysts in a note.
Kering’s revenue rise confirmed a rosy outlook for the start of the year for the luxury sector, after Louis Vuitton owner LVMH (LVMH.PA) also posted a surge in sales in the first quarter, fuelled by undiminised demand from Chinese consumers.
Reporting by Sudip Kar-Gupta; Editing by Sarah White