’s third-quarter sales fell 16 percent on a comparable basis to €3.78 billion ($4.08 billion) as a market-wide slowdown heavily impacted the French luxury group. , and its Other Houses unit including and all posted double-digit declines, while and eyewear both delivered mid-single-digit growth.
The biggest challenge for Kering continues to be Gucci, its biggest and most profitable brand, which is struggling to revive demand after years of stagnant sales became a sharp downturn this year. Efforts to revamp its creative and corporate structures around new leadership following the 2023 ouster of creative director Alessandro Michele and CEO Marco Bizzarri have continued to falter: sales fell 25 percent year-on-year, decelerating sequentially from a 20 percent drop in the first half.
Saint Laurent, long the group’s second-biggest business and previously a long-running success story, is also cooling off, with sales falling 12 percent on a comparable basis.While expectations were already low for the group’s two top units, a deeper-than-expected decline at Other Houses will hardly please investors. The segment comprising McQueen, Balenciaga and Boucheron reported sales down by 14 percent; UBS analysts had only forecast a 5 percent drop.
The group forecast full-year operating profits would drop more than 45 percent to €2.5 billion.
GUCCI Fall Winter 2024
More from NEWS
0
Nicolas Hieronimus, L’Oréal chief executive officer, remains confident about the beauty market and the group’s business. “Considering the global context, …
0
Hermès is delighted to reopen the doors of its expanded and newly relocated store within Shenzhen’s landmark MixC mall, located …
0
Recent news surfaced suggesting that CHANEL is contemplating significant staff cuts in the Chinese region to counter the rapid downturn …
