French luxury group Kering has trumped analysts’ third quarter expectations, mainly thanks to Gucci’s strong performance. Like-for-like turnover grew more than 25 %.
Gucci adds nearly 50 % to turnover
Kering’s total third quarter turnover reached 3.925 billion euro, up 23.2 % compared to the year before, and like-for-like turnover even grew 28.4 %. Gucci was top of the class with a 42.8 % turnover increase to 1.55 billion euro. Yves Saint Laurent also performed admirably (+17.7 % to 383.7 million euro), while sports brand Puma published a 13 % growth. Bottega Veneta lagged behind with a 4.5 % turnover drop, however it still achieved a minor like-for-like turnover growth of just below 1 %.
“Thanks to a impeccable execution of our strategies, we have once again delivered a quarter with excellent growth”, CEO François-Henri Pinault said. “We will continue to focus on organic growth and a strict financial discipline. Despite negative exchange rate fluctuations and a difficult like-for-like base, we continue to believe this will be a record-setting year for Kering.”
Gucci currently performs very well with younger peple and that is clearly visible in its online sales, which have more than doubled compared to the year before.
It will seemingly be a good year for French luxury firms, because competitor LVMH also presented strong third quarter results. Both companies do point out the strong euro and its effects on foreign markets.
