Companies

Kering posts revenue decline

Oct 26, 2023 France

The French-based luxury group posted a 13% revenue decline in the third quarter of 2023, as compared to the same period of last year, due to weak performances at all of its main Houses

In the three months to the 30^thof September, Kering’s revenue amounted to 4.5 billion euros, decreasing by 12% as reported and by 9% on a constant currency basis, as compared to the same period of 2022. Particularly, revenue from its directly operated retail network fell by 6% on a comparable basis, reflecting lower traffic and contrasting performances across regions, and the Wholesale and Other revenue dropped by 20% due to the group’s efforts to strengthen its control over distribution.

“Beyond the challenging macroeconomic conditions and softening demand across the luxury industry, the change in our revenue performance in the third quarter reflects the impact of our decisions to further elevate our brands and their distribution. The organization we put in place in July will enable us to strengthen the steering of our Houses in the current market environment and to reclaim our positions and influence”, commented François-Henri Pinault, Chairman and Chief Executive Officer of Kering.

Gucci

In the third quarter of the current fiscal year, Gucci’s revenue decreased by 12% as reported and by 7% on a constant currency basis to 2.2 billion euros, on a comparable basis to the same period of the previous year. Kering highlighted, however, that during this period, the Maison “unveiled its new creative expression with Sabato De Sarno’s debut collection for the House”.

Yves Saint Laurent

The House recorded a revenue of 768 million euros in the three months to the 30^thof September, which indicates a decline of 16% as reported and by 12% on a constant currency basis, as compared to the same period of last year, “with significant differences across regions”.

Bottega Veneta

In the third quarter of 2023, Bottega Veneta’s revenue totalled 381 million euros, down by 13% as reported and by 7% on a constant currency basis from the same period of the prior year. After Summer 2024 show particularly well-received, the House plans to continue enhancing its exclusivity.

Other Houses

Revenue from Kering’s Other Houses, including Balenciaga and Alexander McQueen, reached 805 million euros in the third quarter of the year, declining by 19% as reported and by 15% on a comparable basis, as compared to a similar period in 2022. Only the jewellery category reported a “good momentum”.

Image Credits: fashionmagazine.com

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