Growth trend continues for Kering in Q3

Worldwide
Published:  21 October, 2022
Credit: Gucci

Luxury fashion group Kering has reported its financial results for the third quarter of the 2022 fiscal year.

The company achieved group revenue of €5.14 billion, an increase of 23% on a reported basis and 14% on a comparable basis year-on-year. Against the third quarter of pre-pandemic 2019, this result was up by 28% on a comparable basis.

Kering reports fast growth for revenue in its directly operated store network, which was up by 19% on a comparable basis in the quarter.

All regions reported growth in the period, with Western Europe (up by 74%) and Japan (up by 31%) achieving standout results. Growth of 1% in North America, the company said, reflects a high comparison basis combined with the hefty contribution of American tourists to European sales momentum.

Despite impacts from Covid restrictions in China, growth in the Asia Pacific region was robust at 7% over Q3 2021.

For Gucci alone, third-quarter revenue was €2.58 billion, an increase of 18% reported and 9% comparable year-on-year. Western Europe momentum was strong and Kering reports 9% comparable growth in directly operated stores and wholesale revenue up by 2% for Gucci.

Yves Saint Laurent achieved quarterly revenue of €916 million, up by 40% on a reported basis and 30% comparable. Sales in Western Europe more than doubled in the period, while sales in directly operated stores were up by 38% and wholesale revenue increased by 13%.

Meanwhile, Bottega Veneta totalled revenue of €437 million, up 20% reported and 14% comparable. Performance was strongest in Western Europe and Japan, while directly operated stores drove the growth with a 20% reported increase (14% comparable). Wholesale revenue fell by 5%, which Kering said was due to a streamlining strategy.

Revenue for Other Houses totalled €995 million for the third quarter, up by 17% as reported and 13% on a comparable basis. Revenue from directly operated stores grew by 43% on a comparable basis, while wholesale revenue was down 25%, reportedly reflecting a strategy to reduce the contribution of this channel.

“Kering’s solid performances in the third quarter underscore the strength of the Group and the pertinence of our strategy. We delivered sharp top-line growth, both versus last year and from pre-pandemic levels,” said François-Henri Pinault, Chairman and Chief Executive Officer of Kering.

“Our ongoing focus on the exclusivity of our brands and on the quality of their distribution are yielding very positive results and reinforcing their positioning in their key markets. In an increasingly complex environment, we maintain the required flexibility to support our profitability and sustain our investments in the long-term outlook of all our Houses, Gucci first and foremost. We are as confident as ever in the potential and prospects of the Group.”