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Gucci weakens in Europe: quarterly sales of Kering fall again

The French luxury fashion group Kering SA also had to accept a drop in sales in the third quarter of 2020. Although the downward trend was slowed down significantly compared to the previous months, the Gucci brand, of all things, has not yet managed to return to growth after the corona-related slump in sales in the spring.

As Kering announced on Thursday evening, consolidated sales in the months of July to September amounted to 3.72 billion euros. This missed the level of the same quarter of the previous year by 4.3 percent. Adjusted for currency effects, sales fell by 1.2 percent. The decline was due to a significant drop in sales at Gucci, by far the most important brand: The label's revenues fell by a total of 12.1 percent (-8.9 percent after adjusting for currency effects), not least due to the weak retail business in Europe caused by the crisis (-47.3 percent) to 2.09 billion euros.

In Japan, the brand's retail sales also fell again (-25.9 percent). In the other markets of the Asia-Pacific region (+10.6 percent) and America (+43.7 percent), however, sales rose sharply. Gucci's wholesale sales shrank by 31.6 percent, but this was due, among other things, to a targeted reduction in trading partners.

The other labels of the group of companies reported growth again: At Yves Saint Laurent sales rose by 0.8 percent (currency-adjusted +3.9 percent) to 510.7 million euros, Bottega Veneta even increased by 17.0 percent (currency-adjusted +20 , 7 percent) to 332.5 million euros. The smaller group brands came together to 669.1 million euros, which corresponds to an increase of 9.3 percent (currency-adjusted +11.7 percent). The labels Alexander McQueen and Balenciaga contributed to the upturn in this segment with double-digit growth rates each.

Photo: Gucci Facebook Page