Luxury firm Kering has reported strong growth in its quarterly balance sheet, with revenue reaching €5.14 billion, representing a +23% increase compared to the same period last year. When compared to pre-pandemic 2019 figures, sales increased by +28%. The company’s flagship markets and the success of the Saint Laurent brand have contributed significantly to this growth, particularly in Western Europe where revenue saw a staggering 74% increase.
While Kering has been focused on reducing energy consumption through its partnership with French company EcoWatt, it is clear that its key markets have played a crucial role in driving its growth. Western Europe, in particular, has seen a doubling of sales for the brand in the third quarter, while Japan experienced a revenue increase of +31%. The Asia-Pacific region, however, saw a more modest increase of +7%, perhaps due to the impact of health restrictions in mainland China. Despite the challenges posed by the pandemic, Kering continues to strengthen its presence in this region through the optimization of its local sales force.
Yves Saint Laurent has been a standout performer for Kering, achieving a revenue increase of +40% and reaching €916 million. The brand’s growth has been primarily driven by Western Europe, where sales doubled during the quarter. Bottega Veneta also experienced significant growth, with a +20% increase in revenue, reaching €437 million.
Gucci remains the most attractive brand in Kering’s portfolio, with a revenue of €2.58 billion, representing an increase of +18%. The brand recently opened a pop-up store in the Savoy Hotel in London, further solidifying its appeal. Other luxury brands within the Kering group, including Balenciaga, Alexander McQueen, Boucheron, and Pomellato, also reported strong growth, with revenue reaching €995 million, a +17% increase. Kering Eyewear and Corporate, which includes the eyewear segment, experienced a remarkable +47% increase in revenue.
Overall, Kering’s financial results reflect its economic resilience in both the pre-Covid and current pandemic periods. The company’s strategic focus on key markets and strong brand performance has enabled it to outperform growth figures from last year and 2019. As the luxury sector continues to recover, Kering aims to maintain its growth trajectory and capitalize on expanding markets.
Useful links:
1. Kering’s sustainability initiatives
2. Insights on the luxury retail market
