At the end of the third quarter of fiscal year 2021, the luxury group Kering reported a 10% increase in revenue compared to the same period in 2019, exceeding €4.18 billion. This growth was primarily driven by the strong performance of e-commerce. While this result shows a slightly lesser performance than the previous quarter’s 11.2% increase, it still demonstrates a recovery to pre-pandemic levels in 2019. Overall, Kering’s sales for the first nine months of the year have risen by 9.0% compared to the same period in 2019, indicating a positive trajectory. In comparison, rival company LVMH has announced an organic sales growth of 11% for the same observation period.
During the period from July to September, Gucci, a prominent brand within the Kering group, recorded revenues of over €2.18 billion. However, sales in its own network only saw a modest increase of 1.6% compared to Q3 2019. This result fell slightly below experts’ predictions, which Gucci attributed to the impact of Covid resurgence in the Asia-Pacific region during the summer months. Nonetheless, François-Henri Pinault, Chairman and CEO of Kering, remains optimistic about Gucci’s future prospects, highlighting the upcoming launch of the Aria collection and the brand’s centenary celebrations this year.
The Saint Laurent brand demonstrated notable growth, with sales reaching €652.9 million in the third quarter. Similarly, Bottega Veneta experienced a significant surge in results, achieving an 18.4% increase compared to Q3 2019. Although Bottega Veneta’s revenue of €363.4 million in Q3 fell slightly short of the previous quarter’s record of €379.4 million, the brand continues to attract consumers even after their decision to withdraw from social media.
Apart from the successful performance of its renowned brands, Kering also highlighted the expansion of Balenciaga and Alexander McQueen, as well as the exceptional growth of its jewelry houses, including Boucheron. These successes were largely attributed to the popularity of these brands in China and South Korea.
Kering’s online sales witnessed a remarkable surge, experiencing a 147.9% increase compared to Q3 2019 and a 24.3% increase compared to Q3 2020. This signifies the enduring importance of digital platforms in the luxury sector, emphasizing how new consumer behaviors and the group’s digital transition efforts have driven this growth.
Useful links:
1. Kering Official Website
2. LVMH Official Website
