Gucci sales surge following major revamp

Surging demand for Gucci clothes and handbags boosted sales at parent company Kering in the first three months of the year.

It follows a major revamp at Gucci - Kering's biggest brand - under creative director Alessandro Michele.

Kering, which owns other marques like Yves Saint Laurent (YSL), also benefited from a recovery in spending by wealthy Chinese shoppers.

Sales at the French group jumped 27% to €3.1bn (£2.7bn) in the quarter.

Gucci's revenue rocketed 37%, while YSL was up 12%.

Alessandro Michele replaced Frida Giannini as creative director at Gucci in 2015, after several years of falling sales at the Italian label.

He introduced more quirky, gender-neutral designs aimed at younger consumers and revamped Gucci's stores. The 97-year-old label has since returned to growth.

The Kering division that includes Balenciaga and Alexander McQueen also saw double-digit expansion in the quarter.

However, analysts warned the European luxury sector was still grappling with headwinds, including a strong euro - which impacts profits made abroad when they are converted back into the currency.

They also fear brewing US-China trade tensions could risk dampening the resurgent Chinese demand.

François-Henri Pinault, Kering's chairman and chief executive, said: "We face... a tough currency environment, but we are confident in the ability of our houses to continue doing better than their peers."