Kering’s comparable third-quarter revenue fell 1 per cent, with Gucci down 6 per cent. The luxury group raised its annual plan for net store closures after closing a net 105 shops in nine months. Jewelry and eyewear grew, while management identified customer traffic as the main constraint on its fashion businesses.
Luxury group Kering’s third-quarter revenue fell 1 per cent on a comparable basis, while Gucci revenue declined 6 per cent. The company reported total revenue of 3,345 million euros and Gucci revenue of 1,291 million euros. Reported group revenue was flat, with currency movements adding 1 percentage point to growth.[1], [2]
Kering closed 128 stores and opened 23 during the first nine months, leaving 105 net closures. That exceeded its initial annual objective of 100. Management said it now planned at least 125 net closures for the year. The preceding year had brought 75 net closures.[1]
Management identified customer traffic as the main constraint, especially for Gucci in mainland China and Japan. Gucci’s directly operated retail revenue fell 9 per cent. Chief executive Luca de Meo described the brand’s recovery as a priority.[1]
Jewelry revenue reached 239 million euros, up 11 per cent comparably. Eyewear revenue was 373 million euros, with comparable growth of 4 per cent. Fashion and Leather Goods revenue fell 3 per cent comparably, while directly operated retail sales excluding Gucci increased 2 per cent.[1]
