Sales at the Irish arm of one of the world’s leading luxury brands, Gucci, jumped 33% last year from €4.09 million to €5.46 million.
New accounts filed by Gucci Ireland Ltd. show that the company’s pre-tax profits more than doubled to €208,868 in the 10 months to the end of December last year following the jump in sales.
Sales of €5.46 million for the 10 months were up €1.37 million from sales of €4.09 million for the previous 12-month period to the end of February 2022.
The average weekly revenue of €124,193 for the 10 months under review last year compares to an average weekly revenue of €78,752 for the prior 12 month period.
The Directors state that “in 2022, the Western European luxury market has recovered strongly from a low base due to the negative impact of the Covid-19 restrictions in 2021”.
They note that “despite the upturn in tourism in Europe, the volume of Chinese tourists remains low and demand for luxury goods remains largely domestic”.
The brand is known for its range of handbags that come with eye-watering prices, with Irish customers paying €33,000 for the purple Gucci Diana crocodile handbag, which is only available in stores here.
The brand’s Irish website also shows that customers can also pay €25,000 in-store for the 1961 Jackie Crocodile small shoulder bag. The retailer also has a wide range of bags priced between €1,000 and €2,000.
Commenting on the risks facing the company, the directors said: “Rising interest rates and turbulence in the financial markets are adversely affecting consumer sentiment and spending. Inflation and rising prices affect consumers’ unavoidable expenses and reduce their purchasing power”.
The directors also note that the armed conflict between Russia and Ukraine, “combined with other geopolitical crises, is increasing pressure on supply chains and raising concerns about the economic outlook among both consumers and financial markets.
However, the note goes on to say that “Gucci Ireland Limited believes it has taken the necessary steps to mitigate the likelihood and impact of these risks.
On the future development of the company, the directors state that “we continue to work towards increasing our market share by focusing on achieving organic growth in the existing store network, providing an excellent retail experience to our customers and optimizing the merchandise available for sale, as well as investing in our current store portfolio”.
The number of employees in the business increased by one to 13 as staff costs increased from €350,863 to €419,516. The profit takes into account non-cash depreciation charges of €731,650, while rental costs increased from €723,173 to €921,607.
At the end of February last year, the company had shareholder funds of €2.83 million. Its cash resources totaled €3.06 million.
