Kering's luxury houses report positive sales growth in Q3
Oct. 23, 2020
Kering’s consolidated revenue in the third quarter totalled 3,717.7 million euros, down 4.3 percent as reported and 1.2 percent on a comparable basis. This performance, the company said, represents a sharp rebound compared with the year-on-year contraction of 43.5 percent as reported and 43.7 percent on a comparable basis posted in the second quarter of 2020. Revenue from the group’s houses amounted to 3,600.1 million euros in the quarter, down 4.7 percent as reported and 1.6 percent on a comparable basis.
“In a tough environment, Kering achieved substantial revenue recovery in the third quarter. The creativity of each of our Houses and the agility of our organization led to a sharp rebound in sales, nearly matching the level of the 2019 third quarter. Against a backdrop that remains uncertain, and despite limited visibility, we are well prepared and confident in our ability to deliver good performances over time,” said François-Henri Pinault, Chairman and Chief Executive Officer of Kering.
Kering witnesses rebound in sales at its luxury houses
The company added that Gucci’s revenue picked up sharply in the third quarter compared with the prior quarter. At 2,087.8 million euros, revenue was down 12.1 percent reported and 8.9 percent on a comparable basis, while retail sales were down 4 percent on a comparable basis. Gucci reported 43.7 percent rise in North America and 10.6 percent growth in Asia-Pacific, while lack of tourists weighed on sales during the period, especially in Western Europe, which was down 47.3 percent and Japan, down 25.9 percent. Online sales grew sharply worldwide, accounting for 12.6 percent of total retail sales, while wholesale revenue contracted 31.6 percent, in line with the House’s ongoing strategy of enhancing the exclusivity of its distribution by reducing the number of third-party retailers.
Yves Saint Laurent returned to growth in the third quarter in both its directly operated stores and its wholesale channel. Total revenue of 510.7 million euros was up 0.8 percent year on year as reported and 3.9 percent on a comparable basis, while retail sales rose 5.8 percent on a comparable basis. In addition to its strong appeal among local customers in Europe and North America, Yves Saint Laurent’s market penetration is increasing in the Asia-Pacific region. Online sales more than doubled year on year, notably reflecting the successful launch of the House’s China e-commerce site in June and driven by the success of the fall 2020 collection, wholesale revenue also rose 3.4 percent.
Bottega Veneta’s revenue totalled 332.5 million euros, up 17 percent as reported and 20.7 percent on a comparable basis. Sales generated in directly operated stores rose 12.1 percent, spurred by an excellent performance in Asia-Pacific and solid growth in North America, while online sales achieved triple-digit growth and revenue from wholesale jumped 63.4 percent.
Overall, the Other Houses returned to growth in the third quarter, with revenue of 669.1 million euros, up 9.3 percent as reported and 11.7 percent on a comparable basis, while retail sales rose 10 percent and wholesale revenue was up 16.7 percent. Alexander McQueen and Balenciaga delivered double-digit growth in both retail and wholesale channels benefiting from the expansion of their directly operated store networks in Asia-Pacific and North America. Revenue for the “Corporate and other” segment rose 10.1 percent as reported and 13.8 percent on a comparable basis, led by Kering Eyewear’s solid performance during the quarter.