Balenciaga is now Kering's Fastest Growing Brand

Alessandro Michele needs to watch his back.

Why?

The answer was given by Kering during a recent conference held by Financial Times in Venice, announcing that Balenciaga is the fastest growing brand, beating Gucci and the other brands of the luxury giant.

According to the statement, the significant growth in revenues was driven by male buyers and millennials.

“Millennials represent 60 percent of what we sell. Together with men, these are growing faster than any other (category)” - said Cedric Charbit, CEO of the fashion house.

He also stressed that the brand has grown in profits of over 100 percent, reaching one billion euros (about $ 1.18 billion) in annual sales of fashion, shoes, and bags in the medium term.

In comparison, Gucci earned a turnover of 6.2 billion euros in 2017, but in the last two quarters, Balenciaga was Kering's fastest growing brand, surpassing the 49% rise in Gucci's sales between January and March.

The credit goes to Demna Gvasalia and his streetwear-friendly garments like the Triple-S sneaker and the oversized colored bags with logo.

In any case, Kering cannot complain: 2017 was the most profitable year of the conglomerate. Revenues increased by 27.2 percent compared to the previous year, with sales for company brands exceeding 10 billion euros.