French luxury conglomerate Kering, whose portfolio includes brands Gucci, Yves Saint Laurent and Bottega Veneta, has revealed the extent to which Covid-19 has impacted the business in the first quarter of the year.

The group’s revenue fell by 15.4 percent on a reported basis and 16.4 percent on a comparable basis to 3.2 to billion euros, with the drop reflecting the impact of global stores closures.

Gucci hit hard by slow-down in China

Gucci, the group’s leading brand, was hit hard by store closures after an “excellent start” to the year. Its revenue dived 22.4 percent as reported and 23.2 percent on a comparable basis to 1.8 billion euros.

At Yves Saint Laurent, revenue was down 12.6 percent as reported and 13.8 percent on a comparable basis to 434.6 million euros, with the less severe decline largely attributed to the label’s limited exposure to Asian markets.

Bottega Veneta posted a more positive performance, with revenue up 10.3 percent as reported and 8.5 percent on a comparable basis to 273.7 million euros.

The group added that it has begun to see “encouraging” signs in Mainland China as stores continue to reopen.

Commenting on the results in a statement, Kering CEO François-Henri Pinault said: “After a very promising start to the year for all our houses, the rapid spread of Covid-19 affected our performance in our main markets. We are working hard on ensuring the continuity and readiness of all our businesses. Adapting our cost base and preserving our cash position are top priorities, implemented at all levels of the group.

“Our solid financial structure and our agility serve us well in this difficult period. My confidence in Kering’s future lies in the strength and values of our houses, which will all emerge from this period of uncertainty at the top of their game, as well as in our ability to blend long-term vision with near-term imperatives.”

Photo credit: Gucci, Facebook