French-based luxury conglomerate Kering Group has reported a 13 per cent year-on-year drop in revenue to €4.5 billion (US$4.8 billion) for the third quarter of this year as markets saw lower traffic.
The group generated €14.6 billion in sales for the first nine months of the year. Revenue was up 1 per cent in Asia excluding Japan, and down 10 per cent in Europe.
Sales of its flagship house Gucci and Yves Saint Laurent were down 14 per cent and 16 per cent to €2.2 billion and €768 million, respectively. While other houses reported a sales drop, Kering Eyewear experienced a 34 per cent increase in revenue to €331 million during the period.
“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,” said Francois-Henri Pinault, chairman and CEO.
“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.”
The company completed its acquisition of luxury fragrance label Creed last week. Earlier this year, Kering acquired a 30 per cent stake in fashion house Valentino from Mayhoola for $1.86 billion.
Earlier this month, Kering named Sean McGirr as the new creative director of Alexander McQueen, succeeding Sarah Burton, who departed the company in September.
