Kering, the esteemed French luxury group, faced a 13% revenue decline in Q3 2023, signaling challenges across its main Houses. Let’s dissect the numbers, exploring the factors contributing to this dip and its strategic implications.
In the quarter ending September 30, Kering reported a 12% dip in revenue, amounting to 4.5 billion euros. On a constant currency basis, the decline was 9%, reflecting weak performances at Gucci, Yves Saint Laurent, Bottega Veneta, and Other Houses.
Gucci, a flagship House, experienced a 12% decrease in revenue, totaling 2.2 billion euros. The quarter marked the debut of Sabato De Sarno’s collection, showcasing a new creative expression amid the challenging luxury market conditions.
Yves Saint Laurent’s Struggle
Yves Saint Laurent grappled with a 16% drop in revenue, amounting to 768 million euros. Regional disparities added complexity to the narrative, underscoring the nuanced challenges faced.
Bottega Veneta’s Trajectory
Bottega Veneta’s revenue plummeted by 13% to 381 million euros, even after a well received Summer 2024 show. The House remains committed to enhancing exclusivity as a strategic response.
Other Houses in the Mix
Revenue from Kering’s Other Houses, encompassing Balenciaga and Alexander McQueen, witnessed a 19% decline, totaling 805 million euros. The jewellery category, however, reported a promising momentum amidst the overall downturn.
François Henri Pinault, Kering’s Chairman and CEO, acknowledged the impact of decisions to elevate brands and distribution. The organization reshuffle in July aims to strengthen Houses in the current market scenario, positioning for a rebound.
Kering’s Q3 2023 journey unveils a complex tapestry of challenges and strategic maneuvers. As the luxury industry navigates macroeconomic headwinds, Kering remains resilient, poised for a resurgence with its refined approach.
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