Kering Group's Revenue Declines 13% in Q3 2023
Gucci, the group’s largest brand, saw sales fall by 14% at reported exchange rates.
Kering revealed its third-quarter financial report on Tuesday, reporting a 13% decrease in revenue, at reported exchange rates, across its roster of high-caliber luxury brands. The group tallied sales of €4.46 billion EUR in the three-month period, marking a 9% decline on an underlying basis.
The conglomerate’s financial figures met the expectations of industry analysts, many of whom had already lowered their forecasts for the group. Gucci, Kering’s biggest label, reported sales of €2.22 billion EUR, or a 14% decrease at reported exchange rates and a 7% decline on an underlying basis. Meanwhile, Yves Saint Laurent dropped by 16% at reported rates, and Bottega Veneta fell by 13% at reported rates.
Revenue from Kering’s “other houses” division, which includes Balenciaga and Alexander McQueen, among others, were down by 19% at reported rates and by 15% on an underlying basis. Kering Eyewear charted a 34% increase in sales to reach €331 million EUR, thanks to the contribution of Maui Jim.
François-Henri Pinault, chairman and chief executive officer of Kering, said,”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.”
Pinault added that the organization that Kering 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.”
In more fashion news, UGG and Telfar launched a new “Krinkle” campaign starring Lil’ Kim, Teezo Touchdown and more.
