Gucci owner announces a drop in sales

Sales for the three months under review fell 9% to €4.46 billion.

Kering, one of the largest luxury brand owners in the global market, has reported its financial results for the third quarter of 2023. The fashion giant’s revenue fell by 13% for all brands in the portfolio. Sales for the three months under review fell 9% to €4.46 billion.

Analysts had expected a weak financial report from Kering. However, after the figures were published, many downgraded their forecasts for the group for 2023. Sales of Gucci, the flagship brand in Kering’s portfolio, fell 12% over the year to €2.22 billion. At exchange rates, sales declined 7%. Yves Saint Laurent sales were down 16% and Bottega Veneta sales were down 13%.

Revenue at Kering, the division that brings together other brands (including Balenciaga and Alexander McQueen), fell 19% in the third quarter. Only the sunglasses segment saw an increase in sales, up 34% to €331 million 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.”