Kering reports strong Q3 growth, but Gucci falls short of expectations

Kering has reported strong revenue growth in the third quarter of the year, despite its star brand Gucci falling short of analysts’ expectations.

The French luxury group, which also owns brands Yves Saint Laurent and Bottega Veneta, reported revenue of 4.19 billion euros in the three months to the end of September, up 12.6 percent on a reported basis, and up 12.2 percent on a comparable basis.

Compared to pre-Covid 2019 levels, revenue was up 10 percent on a comparable basis.

“On the back of an excellent first half, Kering achieved a very solid third quarter at group level, up double digits over 2019. Saint Laurent, Bottega Veneta and our Other Houses, as well as Kering Eyewear, all posted outstanding performances,” said Kering CEO and chair François-Henri Pinault.

Asia slows sales growth at Kering

The company said revenue was driven by “very strong” momentum in North America, while sales continued to improve in Western Europe and Japan, where markets are still being affected by a lack of tourists.

In Asia-Pacific, meanwhile, sales rose relative to both 2020 and 2019, but were held back by rising Covid-19 cases during the summer.

Breaking it down by brand, Gucci fell short of expectations, with sales growing 3.8 percent on a comparable basis to 2.18 billion euros. Analysts had expected growth of around 9 percent.

But Pinault said the brand was in for “an intense fourth quarter” with the launch of its new Aria collection, which gradually arrived in stores from late September.

Things were looking brighter at Kering’s other key labels, with revenue at Yves Saint Laurent up 28.1 percent on a comparable basis to 652.9 million euros, while Bottega Veneta’s revenue came in at 363.4 million euros, representing growth of 8.9 percent on a comparable basis.