The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — French luxury conglomerate Kering posted a better-than-expected revenue rise in third quarter revenue on Tuesday, thanks to another strong performance from Gucci even as sales growth at the thriving brand comes off recent highs.
Kering, which owns other fashion labels including Saint Laurent and Balenciaga, said revenue reached €3.4 billion ($3.90 billion) in the July to September period and increased 27.5 percent on a comparable basis.
Sales growth had been expected to slow more sharply from 31.5 percent a quarter earlier to the 22.5 percent rise forecast in a poll of analysts by Inquiry Financial.
Luxury companies have been prey to investors' jitters over any potential slowdown in China, their single biggest market, and Kering has been in the spotlight over when appetite for Gucci handbags and other wares will start cooling following a hit makeover.
By Sarah White; editor: Sudip Kar-Gupta.
This week, Ssense said it laid off 138 workers, and MatchesFashion received a $73 million cash injection from its shareholder. From more niche players to giants like Farfetch, the pressure remains high for luxury e-tailers.
Former Estée Lauder executive Raffaella Cornaggia has been named CEO of the unit, which will develop beauty for the French group’s brands, including Bottega Veneta, Balenciaga and Alexander McQueen.
Cultural credibility must be earned with respect for sneakerheads, not on their backs, argues Christopher Morency.