The French luxury group Kering has once again grown strongly over the past three months, although its most important brand (Gucci) performed well below expectations.
Covid's impact continues
The French group reported sales of 4.19 billion euros in the period July-September, up 12.2 % on an organic basis. Compared to the same period in 2019 (before the Covid crisis), sales were 10 % higher. The company said revenue growth was driven by "very strong" momentum in North America. In Western Europe and Japan, sales gradually recovered, although both markets continue to suffer from a lack of tourists. In the region Asia/Pacific, growth was held back by increased Covid infections during the summer.
Gucci performed below expectations, with sales growth of 3.8 % to 2.18 billion euros on a like-for-like basis. Analysts had expected growth of 9 %, FashionUnited writes. Of the major brands, Yves Saint Laurent posted the strongest performance, with a 28.1 % organic growth. Bottega Veneta's sales jumped 8.9 % on an organic basis to 363.4 million euros.
No more fur
In the past quarter, Kering also took multiple initiatives regarding sustainability and animal welfare. For example, last month, the luxury group decided to ban all animal fur in the future. Starting with the autumn collection 2022, no "house" of the group will use fur anymore. Gucci already made that decision in 2017.
Together with its industry peer Richemont, Kering is also committed to the "Watch and Jewellery Initiative 2030". The aim is to set a series of ambitious and shared goals for the industry regarding climate, care for natural resources and inclusivity.