“On the back of an excellent first half, Kering achieved a very solid third quarter at Group level, up double digits over 2019. Saint Laurent, Bottega Veneta and our Other Houses, as well as Kering Eyewear, all posted outstanding performances. With the launch of its Aria collection, Gucci is set for an intense fourth quarter. In a constantly evolving Luxury market, we are strengthening the positioning and distribution of all our brands, providing them with the resources they need to be ever closer to their customers. Sustainability is central to our strategy, and we achieved major new milestones in recent weeks. More than ever, we are investing to sustain our profitable growth trajectory over the long term and poised to successfully pursue our journey”, commented François-Henri Pinault, Chairman and Chief Executive Officer of Kering.

Third Quarter Results

In the third quarter of 2021, the luxury group reported revenue of 4.19 billion euros, up by 12.6% as reported and up by 12.2% and 10%, on a comparable basis, to the same period of 2020 and 2019, respectively.  In the first nine months of the year, sales increased by 36.6%, as compared to similar period in 2020 (up by 9.0% versus similar period in 2019).

Revenue from the luxury houses’ directly operated stores, including e-commerce, rose by 12% in the third quarter of the current fiscal year, on a comparable basis to the third quarter of 2020 and 11% to the same quarter of 2019. Online sales increased by 24.3%, as compared to the third quarter of 2020 and by 147.9%, on a comparable basis to the same period in 2019.

The group signalized a “strong performance” in North America and improving sales in Western Europe and Japan, despite these two markets being still affected by the absence of tourists. In the third quarter of 2021, after strong growth in the first half of the year, sales stumbled in Asia-Pacific due to the rise of COVID-19 cases.

Gucci’s Performance

In the third quarter of 2021, Gucci’s growth has slowed down. Revenue totalled 2.19 billion euros, up by 4.5% as reported and by 3.8% on a comparable basis. Wholesale revenue fell by 19.1%, as compared to the third quarter of 2020, and by 44.5%, as compared to the third quarter of 2019, reflecting the House’s strategy of making its distribution more exclusive. The group said Gucci is facing a transition period between collections and that “is set for an intense fourth quarter”.

Other Segments

Yves Saint Laurent reported revenue of 652.9 million euros (up by 27.9% as reported and by 28.1% on a comparable basis), maintaining its strong trajectory, notably in North America and Western Europe, but also reinforcing its appeal in Asia-Pacific. Bottega Veneta’s revenue amounted to 363.4 million euros (up by 9.3% as reported and up by 8.9% on a comparable basis). Revenue from the other Houses totalled 843.7 million euros, up by 26.1% as reported and 26.0% on a comparable basis. The group has explained that revenue also increased very significantly, as compared to 2019, due to the ongoing expansion of Balenciaga and Alexander McQueen, whose sales continue to grow quickly across all distribution channels.

Image Credits: gucci.com