The French luxury goods group Kering SA suffered significant losses in sales in the third quarter of the current 2023 financial year. Revenues at all of the group’s important fashion houses clearly fell short of the previous year’s level.
CEO Pinault points to weak demand across the luxury industry
In an interim statement published on Tuesday evening, CEO François-Henri Pinault blamed the “difficult macroeconomic conditions” and “weakening demand across the luxury industry” for the slide in sales as well as strategic decisions with which Kering would put its brands and their sales back on the road to success in the future want to bring.
In the period from July to September, group sales amounted to 4.46 billion euros. Compared to the same quarter last year, revenue fell by 13 percent and fell short of market expectations. On a comparable basis – i.e. adjusted for currency effects and changes in the group portfolio – they shrank by nine percent.
Gucci’s revenues fall by 14 percent
Sales at Gucci, by far the group’s most important label, fell by 14 percent (-7 percent adjusted for currency effects) to just under 2.22 billion euros. In view of the brand’s ongoing weakness, long-time chief designer Alessandro Michele, CEO Marco Bizzarri and other executives have had to leave the fashion house over the past twelve months.
The new creative director Sabato De Sarno, who was hired at the end of January, is now supposed to ensure a turnaround at Gucci with a stylistic realignment.
Only the eyewear division can make strong gains
At Yves Saint Laurent, sales fell by 16 percent (-12 percent at constant currencies) to 768 million euros, at Bottega Veneta by 13 percent (-7 percent at constant currencies) to 381 million euros.
The group’s other luxury brands, which include Balenciaga, Alexander McQueen, Brioni and Pomellato, achieved combined sales of 805 million euros, missing the level of the previous year’s quarter by 19 percent (-15 percent adjusted for currency effects).
The eyewear division Kering Eyewear provided a small ray of hope. Thanks primarily to the takeover of the Maui Jim brand, its sales increased by 34 percent to 331 million euros. On a comparable basis, revenue grew by two percent.