Retail in Asia


Kering announces financial results


French luxury group Kering witnessed double-digit revenue growth in the third quarter, as Asia-Pacific sales continued to be negatively impacted by restrictions relating to the Covid-19 pandemic.

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Kering, which operates Gucci, Saint Laurent and Bottega Veneta brands, reported July to September quarterly revenues of US$4.87 billion, up 12.2 percent on a comparable basis year-on-year and 10 percent relative to the same period in 2019.

In the first nine months of the year, group sales were up 36.6 percent on a comparable basis year-on-year, and up 9 percent on the same period in 2019.

By region, revenue was driven by “very strong momentum” in North America, whiles “continued to improve” in Western Europe and Japan; two markets still being affected by the absence of tourists. In Asia-Pacific, after solid growth in the first half of the year, sales rose relative to both 2020 and 2019, but were “held back” by rising Covid-19 case numbers during the summer.

By brand, Gucci sales disappointed, lifting 3.8 percent on a comparable basis, while Saint Laurent soared 28.1 percent on 2020.

Bottega Veneta sales increased 8.9 percent while Kering’s Other Houses category jumped 26 percent, according to a press release.

“On the back of an excellent first half, Kering achieved a very solid third quarter at Group level, up double digits over 2019,” said François-Henri Pinault, Chairman and CEO of Kering Group.

“Saint Laurent, Bottega Veneta and our Other Houses, as well as Kering Eyewear, all posted outstanding performances,” he added.

Despite Gucci’s flat performance during the quarter, Pinault went on to predict an “intense” fourth quarter, crediting the launch of Gucci’s Aria collection.

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“In a constantly evolving Luxury market, we are strengthening the positioning and distribution of all our brands, providing them with the resources they need to be ever closer to their customers,” he continued.

“Sustainability is central to our strategy, and we achieved major new milestones in recent weeks. More than ever, we are investing to sustain our profitable growth trajectory over the long term and poised to successfully pursue our journey,” he added.

Kering announced last month the group would go fur-free across its entire brand portfolio by Autumn 2022.