Kering, the luxury conglomerate, has released its financial results for the third quarter, revealing a 13% decrease in group revenue on a reported basis and a 9% decline on a comparable basis, amounting to €4.5 billion. This drop was attributed to a 6% negative impact from exchange rate fluctuations and a 2% positive influence stemming from the acquisition of Maui Jim.
Revenue from its directly operated stores network experienced a 6% decline on a comparable basis, primarily due to reduced foot traffic and varying regional performances. In contrast, wholesale and other revenue witnessed a substantial 20% decline on a comparable basis as the company maintained a tight grip on distribution.
For the first nine months of 2023, Kering's total revenue amounted to €14.6 billion, reflecting a 3% decrease on a reported basis and a 2% decline on a comparable basis.
In the third quarter, Gucci reported revenue of €2.2 billion, indicating a 14% drop on a reported basis and a 7% decline on a comparable basis. Sales within its directly operated retail network contracted by 7% on a comparable basis, while wholesale revenue saw a 17% reduction.
Yves Saint Laurent experienced a reported revenue decline of 16%, with a 12% decrease on a comparable basis, amounting to €768 million. Sales from its directly operated retail network dropped by 4% on a comparable basis, while wholesale figures plunged by 38%.
Bottega Veneta generated €381 million in revenue during the period, showing a 13% decrease on a reported basis and a 7% decline on a comparable basis. Its directly operated retail network experienced a 2% drop, while wholesale revenue decreased by 30%.
Other Houses accumulated revenue of €805 million in the quarter, reflecting a 19% decrease on a reported basis and a 15% decline on a comparable basis.
François-Henri Pinault, Chairman and CEO of Kering, commented on the results, stating, " 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. The organisation we 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. With the acquisition of Creed completed last week, one of the world’s most distinguished high fragrance houses has joined our family, propelling our ambitions in beauty onto the next stage.”