The French-based luxury goods corporation, Kering International suffered a drop in share price today, as it reported in its third-quarter statement a fall in revenue for its fashion brand, Gucci.
Kering is home to brands such as Gucci, Saint Laurent, Balenciaga and Alexander McQueen. The group’s share price fell by 4% at €624.50 in early morning trading on Wednesday, after posting a 19.1% drop in its wholesale revenue for Gucci, compared to the prior year.
Group revenue in the third quarter rose 12.2% on a comparable basis year-on-year and 10% relative to the same period in 2019.
Sales growth for the group was driven by increased sales momentum in North America. Western Europe and Japan suffered due to the absence of tourists, but sales improved.
“In Asia-Pacific, after solid growth in the first half of the year, sales rose relative to both 2020 and 2019, but were held back by rising COVID-19 case numbers during the summer,” the statement said.
François-Henri Pinault, chair and CEO, said: “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. With the launch of its Aria collection, Gucci is set for an intense fourth quarter.”
“In a constantly evolving Luxury market, we are strengthening the positioning and distribution of all our brands, providing them with the resources they need to be ever closer to their customers. Sustainability is central to our strategy, and we achieved major new milestones in recent weeks. More than ever, we are investing to sustain our profitable growth trajectory over the long term and poised to successfully pursue our journey,” he added.