Kering Group’s Q3 Overview: Insights into Luxury Brands and Overall Performance
In a detailed review of the third quarter, François-Henri Pinault, Chairman and Chief Executive Officer, shed light on the evolving dynamics of the luxury market. “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. The organization we 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. With the acquisition of Creed completed last week, one of the world’s most distinguished high fragrance houses has joined our family, propelling our ambitions in beauty onto the next stage.”
Key Figures:
- Q3 group revenue stands at €4.5 billion, witnessing a decline of 13% as reported, and 9% on a comparable basis.
- Notably, revenue from direct retail operations fell by 6%, while the Wholesale and Other sector saw a significant 20% decline, emphasizing the group’s efforts to tighten control over distribution.
- In the first nine months of 2023, the Group accumulated a revenue of €14.6 billion.
Brand Highlights:
Gucci reported a Q3 revenue of €2.2 billion, a 14% decline as reported. There’s been a notable 7% fall in sales from the directly operated retail network. Despite this, Gucci introduced a fresh creative touch with Sabato De Sarno’s debut collection.
With Q3 revenue of €768 million, Yves Saint Laurent faced a 16% decline as reported. Sales in the direct retail network fell 4% due to a high comparative base from the previous year. The brand continues its strategy to elevate its offerings.
Bottega Veneta‘s Q3 revenue was €381 million, marking a 13% decline. The Summer 2024 show has been positively received, with an ongoing strategy to enhance the brand’s exclusivity.
Other Houses: A total Q3 revenue of €805 million was reported, with a 19% decline as reported. Balenciaga and Alexander McQueen observed varied growth, whereas Boucheron’s performance stood out with its High Jewelry collections.
