French luxury group Kering confirmed a broad recovery in sales of high-end goods in the third quarter as Asian and U.S. demand helped revenues improve, though its star Gucci brand underperformed rivals.
French luxury group Kering's Q2 comp sales plunged by 43.7% due to the coronavirus. Gucci comp sales fell 45% and Saint Laurent 48%, but recovering Bottega Veneta contained the drop in revenue to only 24.4%
As previously announced, Kering's Gucci has executed an increasingly popular strategy among luxury fashion houses and reduced the number of its retail partners, notably cutting its wholesale network by 70% in Italy.
The luxury industry is assessing the first effects of the relaxation of lockdown regulations in China. Most shops have been reopened since around a month and a different market appears to be emerging after the crisis.
At the presentation of the luxury group's annual results, boss François-Henri Pinault said there is no acquisition on the cards at the moment, the priority being ensuring the growth of Kering's own labels.
The Kering-owned Italian luxury label had been declining since 2016, but in 2019 it started growing again under the aegis of creative director Daniel Lee, generating a revenue of €1.16 billion, up 5.3%.
Despite disruption in Hong Kong, Kering recorded a positive Q3 with revenue up by 14%, driven by strong performances by Gucci, Bottega Veneta and Saint Laurent, as the luxury group’s share price soared last Friday.