Sales at the Irish arm at one of the world's leading luxury brands, Gucci last year soared by 33% from €4.09m to €5.46m.
New accounts filed by Gucci Ireland Ltd show that the business pre-tax profits more than doubled to €208,868 following the jump in revenues in the 10 months to the end of last December.
The revenues of €5.46m for the 10 months was a €1.37m increase on revenues of €4.09m for the prior 12 month period to the end of February 2022.
The average weekly revenues of €124,193 for the 10 months under review last year compare to average weekly revenues of €78,752 for the prior 12 month period.
The directors state that "in 2022, the Western Europe luxury market rebounded strongly from a low base due to the negative impact of Covid-19 restrictions in 2021".
They state that "despite the upturn in tourism in Europe, the volume of Chinese tourists remains low, and demand for luxury goods remained largely domestic".
The brand is renowned for its range of handbags that come with eye watering prices where Irish customers can pay €33,000 for the purple Gucci Diana crocodile handbag which is only available here in-store.
The brand’s Irish website also shows that customers can also pay in-store €25,000 for the 1961 Jackie Crocodile small shoulder bag. The retailer also has a comprehensive range of bags in the €1,000 to €2,000 price range.
On the risks facing the company, the directors state that "rising interest rates and turbulence in financial markets is adversely affecting sentiment among consumers and their propensity to spend. Inflation and rising prices are affecting consumers' unavoidable expenditure and reducing their purchasing power".
The directors also state the armed conflict between Russia and Ukraine "combined with other geopolitical crises, increases the pressure on supply chains and creates concern about the economic outlook among both consumers and the financial markets".
However, the note states that "Gucci Ireland Limited believes it has taken the requisite measures to reduce as far as possible the likelihood of risks occurring and their impact".
On the company’s future developments, the directors state that "we continue to work towards increasing our market share by focusing on the achievement of an organic growth on the existing stores network, providing an excellent retail experience to our customers and optimising the merchandise available for sale, along with investing in our current store portfolio".
Numbers employed at the business increased by one to 13 as staff costs increased from €350,863 to €419,516. The profit takes account of non-cash depreciation costs of €731,650 while lease charges increased from €723,173 to €921,607.
At the end of February last year, the firm had shareholder funds of €2.83m. Its cash funds totalled €3.06m.
Reporting by Gordon Deegan
