Kering’s star fashion brand Gucci grew sales by 3.8 percent in the third quarter, missing analyst expectations, as the pace of recovery from the coronavirus pandemic slowed down sharply following a bumper second quarter, particularly in Asia.

Overall sales at the French luxury group rose by 12.2 percent on a comparable basis, which strips out the effect of acquisitions and currency fluctuations, a touch above an analyst consensus forecast for an 11 percent increase.

The group flagged a strong performance in the United States and improving sales in western Europe but said a resurgence of COVID-19 cases in late July and August had weighed on revenues in the key Asia-Pacific region.

Investors are likely to focus on the performance of Gucci, which accounts for more than half of annual sales, and has been losing steam compared to some rivals after years of stellar growth.

Kering’s finance chief, Jean-Marc Duplaix, told reporters the group expected Gucci’s growth to accelerate in the fourth quarter after its new Aria collection hit stores in late September.

“We expect a very intense end of the year,” he said, adding the group was looking to support the brand with investments in events, communication and stores.

By Mimosa Spencer; Editing by Silvia Aloisi

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