Gucci sales lag but Kering above pre-pandemic level

Gucci sales lag but Kering above pre-pandemic level

French luxury group Kering said on Tuesday its third-quarter sales had outpaced pre-pandemic levels, but its main label Gucci lagged behind as a resurgent Covid kept Asia-Pacific buyers away.

During the months of July through September, the company’s sales hit nearly 4.2 billion euros ($4.9 billion), an increase of more than 10 percent from the same period in 2019.

Over the first nine months of the year, the company’s sales are running nine percent higher than in 2019, before the pandemic broke out.

However, Gucci sales came in at 2.18 billion euros, a drop of eight percent from the third quarter of 2019.

With the label heavily dependent on the Asia-Pacific region, Gucci was hit hard by Covid store closures and lockdowns in Australia and New Zealand, as well as a drop in travel by the Chinese.

“All that weighed upon it a bit,” Chief Financial Officer Jean-Marc Duplaix said in a conference call.

But chief executive Francois-Henri Pinault said in a statement that with the launch of a new collection, “Gucci is set for an intense fourth quarter.”

Geographically, growth momentum was driven by North America in the third quarter.

Online sales continued to grow as well, up by nearly a quarter from the same period last year and by nearly 150 percent from the third quarter of 2019.

Agence France-Presse

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