Gucci reports slowest sales growth in four years
Kering Group reports hird-quarter revenue trailed estimates amid the weakest growth in four years at the Gucci luxury-goods brand of 0,6 percent. For Q3, Gucci’s parent company, Kering Group announced a turnover of 1,6 billion euros , a 5,6% increase compared to the same period last year.
Bottega Veneta remains the best performing brand of Kering with a 16% increase in Q3 sales followed by Saint Laurent Paris with an increase of 12 percent, while all other fashion brands of the group – Stella McCartney, Alexander McQueen Balenciaga posting a 9 percent sales increase in Q3.
Sales from continuing operations fell 1.5 percent to 2.52 billion euros ($3.48 billion).Analysts predicted 2.55 billion euros, according to the median of 14 estimates compiled by Bloomberg. Excluding acquisitions and currency fluctuations, revenue rose 3.4 percent, the company said.
Kering’s performance confirms luxury growth is moderating in the second half of the year, Luca Solca, an analyst at Exane BNP Paribas in London, said by e-mail. Gucci missed “because of the need to streamline wholesale,” he said.