Gucci has announced plans to reach €10 billion in revenue.
At an event for the financial community (analysts and investors) dedicated to Gucci and Kering Eyewear, the luxury brand has announced it expects sales to grow at twice the pace of the luxury market in the coming years to eventually reach €10 billion ($11.82 billion USD).
While there is no timeline for the €10 billion goal, owner Kering reported its most profitable year on record in February after Gucci sales rose 45% in Q4 2017. According to consultancy Bain & Co, this growth was led by millennial shoppers, with customers under 35 making up 85% of growth last year.
According to Reuters, the brand added that it aimed to have an operating margin of more than 40%, compared to around 34% in 2017.
Gucci’s challenges include ensuring its kooky style will keep customers coming back, as it develops a following for high-margin items like leather handbags.
Gucci also said on Thursday it would continue to invest in eCommerce and has plans to triple revenue, drive organic growth through higher penetration and enhanced customer experience, roll-out Gucci.com in new markets and conversion of key e-tailers (virtual concessions).