Luxury group Kering has announced its revenue for the first quarter of 2023, reporting a total of €5.077 billion ($6.039 billion). This reflects a 2% increase in reported data and a 1% increase on a comparable basis. The positive growth is attributed to Kering’s new retail strategy, which has contributed to a gradual recovery.
Chairman and CEO of Kering, François-Henri Pinault, acknowledged the mixed performance in the first quarter but highlighted the progressive improvement in activity throughout the period.
Kering’s flagship brand, Gucci, is slowly bouncing back after experiencing a decline in sales of 14% in the previous quarter. With revenue reaching €2.616 billion ($3.114 billion) at the beginning of this year, Gucci saw a modest growth of 1%. The brand benefited from increased consumption in Asia, particularly in China, along with the overall recovery observed in the luxury sector.
However, the other brands in the Kering group, including Balenciaga and Alexander McQueen, faced challenges, with their sales declining by 9% collectively. Saint Laurent, on the other hand, stood out with a notable growth of 8% on a comparable basis, achieving a revenue of €806 million ($961 million).
Bottega Veneta maintained stable sales during the same period, with revenue amounting to €395 million ($470 million). The fashion house’s focus on investing in its own distribution network and restructuring its physical retail stores contributed to its steady performance.
Kering has reiterated its strategy of prioritizing sales through its own channels. The group has reduced its presence in wholesale, which resulted in a 10% decline in sales in this channel at the beginning of the year. In contrast, the performance of Kering’s own network of retail stores, including e-commerce activities, saw a 4% increase. This growth was supported by the revitalization of the group’s points of sale.
It is worth noting that these results indicate a positive trend for Kering as it recovers from the challenges posed by the pandemic. The luxury group continues to adapt and refine its strategies to drive growth in the evolving luxury market.
Useful links:
1. Kering Official Website
2. Gucci Official Website
