Kering are still suffering from a negative trend in the third quarter of the year, yet they have gone beyond expectations (anyway). They have therefore confirmed luxury recovery, in summer, following the positive data about LVMH and Hermès. The USA, China and online sales have been driving the business. Bottega Veneta flies high. Conversely, Gucci “has been perhaps more affected, compared to others, by tourism travelling crisis”, commented Chief Financial Officer Jean-Marc Duplaix.
Beyond expectations
In 2020 third quarter, Kering consolidated revenues amounted to 3.72 billion euros, therefore decreasing by 4.3% at current rates of exchange and dropping by 1.2% at comparable rates of exchange. Results turned out to be more rewarding compared to financial analysts’ predictions, mentioned by Reuters, which ranged from -8 to -13%. They have also done better compared to the previous quarter, as earnings heavily slumped down 44%. Online sales have been increasing by 102%. Over the nine months of the year, Kering overall turnover reached 9.096 billion euros, thus going down by 20.6%.
Bottega Veneta flies high
As regards Gucci, revenues have decreased by 12.1% at current rates of exchange and have gone down by 8.9% at fixed rates of exchange. Yves Saint Laurent has enjoyed +0.8% and +3.9% respectively. Bottega Veneta flies high: +17% at current rates of exchange, +20.7% at fixed rates of exchange. As for “Other brands”, they went up by 9.3% and 11.7%, respectively. “Alexander McQueen and Balenciaga – pointed out Kering in a statement – have been enjoying a boost in double figures both in retail and wholesale channels”.
Pinault: “A remarkable recovery”
“While playing in a difficult scenario – commented Chief Executive Officer François-Henri Pinault (in the Shutterstock picture, right) – Kering successfully achieved a remarkable recovery in revenues from sales in the third quarter of the year”. Kering chief boss emphasized e-commerce growth as much as the group’s sound financial situation. He has also claimed that the group is “well-equipped and confident in its ability to achieve a rewarding performance in the days to come”.
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