Kering Q3 revenues fall 13% amid cooling luxury demand

Kering Group, the owner of luxury brands Gucci, Yves Saint Laurent and Bottega Veneta, revealed that group revenues were down 13% to €4.5bn (£3.9bn) in Q3. 

This comes as the group’s revenues from its directly operated retail network fell 6% on a comparable basis, reflecting lower traffic and contrasted performances across regions. 

During the quarter, Gucci and Bottega Veneta revenues dropped 14% and 13% respectively, while Yves Saint Laurent revenues fell 16%. 

Despite this, Gucci unveiled its new creative expression with Sabato De Sarno’s debut collection for the House during Q3. According to Kering, Gucci’s management team is “hard at work on the flawless execution” of its strategy. 

Meanwhile, Yves Saint Laurent achieved positive momentum in Women’s ready-to-wear in Q3 and is pursuing its strategy aimed at elevating its offering.

In addition, Bottega Veneta’s Summer 2024 show was “particularly” well received and the House is continuing to “enhance its exclusivity”. 

In the first nine months of the year, Kering generated revenues of €14.6bn (£12.7bn).

François-Henri Pinault, chairman and CEO of Kering Group, said: “Beyond the challenging macroeconomic conditions and softening demand across the luxury industry, the change in our revenue performance in the third quarter reflects the impact of our decisions to further elevate our brands and their distribution. 

“The organisation we put in place in July will enable us to strengthen the steering of our Houses in the current market environment and to reclaim our positions and influence.” 

He added: “With the acquisition of Creed completed last week, one of the world’s most distinguished high fragrance houses has joined our family, propelling our ambitions in beauty onto the next stage.”