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.
Kering led a luxury goods share rally on Friday after its star fashion label Gucci posted stronger-than-expected sales, demonstrating how some brands have so far managed to counter the hit from protests in Hong Kong.
Sales growth at Kering slowed slightly in the third quarter, in line with expectations, as the luxury group offset some of the hit from turmoil in Hong Kong with strong spending by shoppers in other Asian markets.
Kering’s main Gucci brand, which set a high bar for luxury goods rivals during several years of explosive growth, posted a slower-than-expected rise in second-quarter sales on Thursday, hit by a blip in the U.S.
The French luxury group has announced that the CEO of Balenciaga is joining its executive committee. Charbit took over the label's leadership in November 2016, and will start in the new role from July 1.
Gucci growth is slowing but Kering is OK with that as it's still surging. Meanwhile Saint Laurent and Balenciaga are powering ahead and Bottega Veneta sales may be down, but the omens are good for Daniel Lee's designs.
After slowing down in the last three years, the Italian label owned by Kering is relying on new creative director Daniel Lee, whose first show is scheduled on February 22 in Milan, to return to growth.
The luxury group's leading label posted record results in 2018, and is expecting to grow at twice the market’s rate in 2019, reaching a 40% operating margin, as it prepares to launch a high jewellery line.
Luxury goods group Kering joined competitors in defying concerns of waning demand in China, as momentum at its powerhouse Gucci slowed slightly in the fourth quarter but still outperformed most other fashion brands.
Demand for Gucci handbags proved more resilient than expected in the third quarter, helping to drive a strong revenue rise at parent Kering at a time of heightened investor nerves over luxury goods companies.