KERING STELLAR GROWTH

Kering said sales increased by 14% in its third quarter, driven by strong results in Europe, although Gucci revenues lagged behind overall growth.

With the dollar strong in Europe and the Chinese market recovering from COVID-19 restrictions, luxury giants are disregarding concerns that the industry’s post-pandemic boom may cool.

With overall sales of 5.137 billion euros in the three months to September, Kering also benefited largely from that trend. Analysts had predicted a 12% increase on a comparable basis, which strips out currency fluctuations. However, Gucci’s sales grew by 9%, below a consensus forecast of 11%.

The label’s performance in China was “mixed” and “has yet to normalize,” said Kering’s finance chief Jean-Marc Duplaix.¬†Following years of stellar growth, Gucci has underperformed rivals Louis Vuitton and Hermes in terms of its sales, which accounts for the bulk of profits at Kering.¬†Too bad the turnover is not like Gucci’s collection this season, a double vision.