Kering, the French luxury conglomerate, has announced a significant increase in sales for the third quarter, driven primarily by strong performance in Europe. Despite this positive overall growth, their star label Gucci did not experience the same level of success and fell behind in terms of sales increase.
There were initial concerns that the luxury industry’s boom following the COVID-19 pandemic might be coming to an end due to a potential economic recession. However, major luxury brands have proven to be resilient in the face of these challenges. U.S. shoppers have taken advantage of the strength of the dollar in Europe, while the Chinese market has also rebounded from previous COVID-19-related restrictions. This has greatly benefited Kering, as their overall sales reached 5.137 billion euros ($5.04 billion) in the three months leading up to September. Furthermore, when adjusted for currency fluctuations, the 14% increase surpassed the analyst consensus of a 12% rise.
Unfortunately, Gucci’s sales only increased by 9%, falling short of the expected 11% growth. Jean-Marc Duplaix, Kering’s finance chief, commented that Gucci’s performance in China was “mixed” and stated that it has yet to return to pre-pandemic levels. However, specific figures were not provided.
Gucci, which accounts for the majority of Kering’s profits, has been facing increased scrutiny in the market lately. Despite years of impressive growth, its sales have started to underperform in comparison to competitors such as Louis Vuitton and Hermes.
For more information on Kering’s recent sales performance, please visit this link.
To learn more about Gucci’s position in the luxury market and its competitors, click here.
