Kering, the renowned luxury conglomerate, recently released its financial report for the third quarter of 2023. The results revealed a 13% decrease in revenue when considering reported exchange rates across its prestigious portfolio of luxury brands. In the three-month period, Kering reported total sales of €4.46 billion EUR, reflecting a 9% decline when evaluated on an underlying basis.
These financial figures aligned with the expectations of industry analysts, who had already adjusted their forecasts for the group. Gucci, Kering's flagship brand, reported sales of €2.22 billion EUR, signifying a 14% decrease at reported exchange rates and a 7% decline on an underlying basis. Similarly, Yves Saint Laurent experienced a 16% decline at reported rates, while Bottega Veneta's sales fell by 13% at reported rates.
The "other houses" division within Kering, which includes prestigious names like Balenciaga and Alexander McQueen, reported a 19% decrease in revenue at reported rates and a 15% decrease on an underlying basis. On a positive note, Kering Eyewear bucked the trend with a notable 34% increase in sales, reaching €331 million EUR, partly attributed to the contributions from Maui Jim.
François-Henri Pinault, Chairman and Chief Executive Officer of Kering, commented on the results, stating, "Beyond the challenging macroeconomic conditions and the softened demand across the luxury industry, the change in our revenue performance in the third quarter reflects the impact of our decisions to further elevate our brands and their distribution."
Pinault went on to emphasize the significance of the organizational changes implemented by Kering in July, expressing confidence that these adjustments would strengthen the company's ability to navigate the current market environment and regain its positions of influence.