Gucci sales slide again – Kering shares tumble around 11 percent
Gucci down six percent, 125 store closures planned: Kering's quarterly figures disappointed investors. On Friday the share price fell by around 11 percent.
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Luxury group Kering posted third-quarter revenue of 3.35 billion euros, down one percent on a comparable basis. Its biggest brand, Gucci, generated 1.29 billion euros, a comparable decline of six percent, with sales in its own stores down nine percent. The company said on October 22 that lower store traffic in Mainland China and Japan was the main drag.
Growth came from the jewelry division with Boucheron and Pomellato (up 11 percent) and from eyewear (up four percent). Kering closed a net 105 stores in the first nine months and now targets at least 125 by year-end. "The recovery of Gucci remains our defining priority," chief executive Luca de Meo said. Chief financial officer Armelle Poulou said, according to Reuters: "We keep on carrying out our plan with the utmost discipline."
Kering shares fell by around 11 percent on Friday, Reuters reported. JPMorgan analyst Chiara Battistini wrote in a note: "The progress made on improving brand desirability remains in its very early stages." The group is also dealing with creative upheaval: in October Anthony Vaccarello left Saint Laurent and Seán McGirr left McQueen.