Kering's 3Q Revenue Boosted by Europe Tourism, But China Lockdowns Weighed on Gucci
October 20 2022 - 12:16PM
Dow Jones News
By Joshua Kirby
Kering said Thursday that revenue soared in Europe in the third
quarter but was more muted elsewhere, with main brand Gucci's
performance in China hampered by pandemic-related restrictions in
the key market.
Total revenue rose 14% at constant currency to 5.14 billion
euros ($5.02 billion), slightly ahead of analysts' expectations of
EUR4.97 billion, according to a poll of estimates compiled by
FactSet.
Sales in Western Europe soared 74% in the quarter, as U.S.
tourists flocked to capitals over the summer. However, this shift
in spending contributed to only very slight growth in North America
in the quarter, Kering said.
Asia-Pacific growth was "robust" at 7%, despite the impact of
anti-pandemic restrictions in mainland China, Kering said. For
Gucci, overall sales growth was 9% to EUR2.58 billion, with a mixed
performance in China, the company said.
While there was an improvement in growth trends compared with
the second quarter, the sanitary situation in China remains a
headwind for the group's brands, finance chief Jean-Marc Duplaix
said in a call with journalists. "We still haven't returned to a
normal situation," he said.
The group's second-largest brand Yves Saint Laurent meanwhile
posted very rapid growth of 30% to EUR916 million, with Western
Europe sales more than doubling thanks both to tourists and local
customers, Kering said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
October 20, 2022 12:01 ET (16:01 GMT)
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