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Key industry figures have been responding to what has been described as “very solid revenue growth” for the French-based multinational Kering during 2022’s third quarter, as other high-end brands have been considering the lessons they can learn from the company’s resilience.
Amid increasing concerns that the luxury sector that has thus far been largely unaffected by global economic constraints might be seeing a period of slowdown after the initial post-pandemic boom, Kering said that its group revenue in Q3 2022 had increased by 23% as reported, and was up 14% on a comparable basis versus the third quarter of 2021.
The group added that compared to the third quarter of 2019 – the last full year before the COVID-19 crisis reached Europe – comparable revenue had increased by 28%. Furthermore, the company said, all regions had posted growth during the quarter, led by Western Europe (+74%) and Japan (+31%).
A positive picture looking forward for Kering, even as some storm clouds gather
Kering’s overall sales in the three months to September were €5.137 billion ($5.04 billion). Of the luxury brands that Kering owns, Gucci fared strongly with revenue that totalled €2,581 million during the quarter – which was a 9% rise on a comparable basis – while Yves Saint Laurent achieved what the group hailed as “an outstanding third quarter”, delivering €916 million in revenue – a 30% increase on a comparable basis.
Indeed, it was this strong portfolio of brands that helped Kering to produce such an impressive performance in the third quarter, according to the data and analytics company GlobalData.
Darcey Jupp, GlobalData apparel analyst, said that “Kering’s luxury apparel proposition continued to excel” during the period, “despite a harsh backdrop of mounting macroeconomic challenges.”
Of the group’s especially strong showing in its home market of Western Europe, Ms Jupp said that it had “benefitted from a surge in tourism over the summer months, as US visitors in particular took advantage of the weak euro to buy luxury goods on European soil.”
She warned, however, that the fourth quarter could be a more challenging period for both Kering and its competitor LVMH, as consumers sought to tighten their belts and lower their Christmas spending – a situation that made it “essential for Kering to buckle down on its product ranges to engage consumers looking to make one-off luxury purchases at Christmas – particularly key categories such as handbags and accessories.
“Despite this, Kering’s core clientele will be less affected by macroeconomic pressures, so the group is in a good position going forward.”
Ms Jupp also had praise for the group’s alliances with other major players, stating that Gucci’s expanding portfolio of collaborations demonstrated “that it understands how to create viral collections, such as its Adidas partnership that launched in June, and the recent announcement of a collection with cult streetwear brand Palace.”
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