Third quarter sales of French luxury group Kering's star fashion brand Gucci missed analysts’ expectations as they grew by just 3.8 per cent owing the slowing of recovery pace, particularly in Asia.
As per a Reuters report, encouraged by pentup demand for high-end wares with the easing of lockdowns, sales of luxury groups have bounced back strongly.
Overall sales at Kering rose by 12.2 per cent on a comparable basis, marginally above the analyst consensus forecast for an 11 per cent increase. The group reported a strong growth in the United States and Western Europe. However, a resurgence of COVID-19 cases in late July and August weighed on the brand’s revenue in the key Asia-Pacific region, where its sales declined by 3 per cent.
Analysts had expected Gucci’s revenues to rise by 9 per cent in the three months to end-September after an 86 per cent surge in the previous quarter. By comparison, LVMH's fashion and leather goods division, home to Louis Vuitton and Dior, posted a 24 per cent increase in third-quarter sales.
Jean-Marc Duplaix, Chief Financial Officer, Kering, the group expected Gucci's growth to accelerate in the fourth quarter after its new Aria collection. The group aims to support the brand with investments in events, communication, stores and recruitment, efforts that would hit the brand's margin growth in the second half.
