Kering Group Q1 luxury division sales fall 2,6%

World’s third largest luxury group Kering’s luxury activities saw a 10.9 percent increase in revenue for the first quarter. The conglomerate’s group revenue reached $2.9 billion for the first three months of 2015, up 11.4 percent from the previous year.

The figures “reflect a complex economic and monetary environment as well as the transition under way at Gucci,” Kering Chairman and Chief Executive François-Henri Pinault said.

Kering’s Bottega Veneta brand, which had seemed largely immune to the recent slowdown in the global luxury industry, has been recording slower growth. In the first quarter, Bottega Veneta posted a 3.1% rise in sales, hit by a difficult business environment in Hong Kong and Macau, where the label makes around 19% of its sales

Kering’s other luxury brands—which include fashion houses such as Balenciaga, Stella McCartney and jeweler Boucheron—also reported a drop in sales, down 4.5%.

Kering Group’s best performing brand remains Yves Saint Laurent with quarterly sales were up 21%, excluding currency effects.

Demand for Kering’s sport and lifestyle division which includes Puma has remained stable. In the first quarter, sales at the division rose 3.7% to €890 million, outpacing Kering’s luxury division, which saw sales fall by 2.6%.

Saint Laurent store, Short Hills Mall NJ