Kering is weighed down by 2023. The French luxury conglomerate estimates its turnover at a total of 4.5 billion euros in the third quarter of 2023. This is 13% less than in the same period of 2022. A decrease in sales volume and inequality in the different regions seem to have been the cause of these results at Kering.
As the group explains in its press release, revenue from the shop network fell by 6% compared to the same period last year in the different regions where Kering operates. In the first nine months of the year, Kering generated revenues of 14.6 billion euros. Last year, the luxury conglomerate had a total turnover of more than 20 billion euros and a net profit of more than 3.5 billion euros, a figure that will be difficult to match in 2023, a year in which it expects double-digit growth.
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Two of its pillars, Gucci and Balenciaga, were not spared from the 'slump' suffered by Kering. Gucci's revenues fell by more than 14% in July, September and August compared to the previous year. Kering says that Gucci is working on a new and effective strategy to reverse these results. Yves Saint Laurent also saw its revenues fall even more than the Italian firm, by 16.1%. The French cosmetics firm saw purchases in its stores fall by 4%, and wholesale sales by more than 35%.
François-Henri Pinault, Chairman and CEO, said for Kering that these results are part of Kering's strategy to elevate its distribution and seek an even more premium audience: "Beyond the difficult macroeconomic conditions and weakening demand across the luxury sector, 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 allow us to strengthen the direction of our Houses in the current market environment and regain our positions and influence. With the acquisition of Creed, completed last week, one of the world's most distinguished fine fragrance houses has joined our family, propelling our ambitions in beauty to the next stage."
Saved by the bell: Kering Eyewear
Kering's optical division, Kering Eyewear, was the only 'darling' of the third quarter. Kering Eyewear's turnover was the only one to see positive figures. It amounted to 331 million euros in the third quarter of 2023, up 34% according to forecasts. The growth was mainly due to sales of optical frames, following strong sales of sunglasses in the first half of the year.