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.
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
Learn more:
After years of blockbuster growth, Gucci is struggling to bounce back from the pandemic. Getting back on track will require the brand to appeal to multiple tribes of consumers.
Across its 53-year history, international art fair Art Basel has been quick to innovate, catering to a rapidly developing art market and its customers. Today, it is utilising its expertise to help fashion and luxury do the same.
Almost 50 years since the creation of the ‘Wrap Dress,’ von Fürstenberg reflects on the highs and lows of her eponymous brand.
While Chanel recently restaged its latest cruise show in nearby Shenzhen, Louis Vuitton is betting on Hong Kong for the unveiling of Pharrell’s second collection for the house.
The Colombian designer faces up to 20 years in jail and hundreds of thousands of dollars in fines.