Kering's Luxury Brands Struggle in Q3 2023, Revenue Down 13%
Luxury goods giant Kering has reported a significant drop in revenue for the third quarter of 2023. The group's total revenue fell 13% to 4.46 billion euros, with several of its high-end fashion houses experiencing declines.
Bottega Veneta, one of Kering's leading brands, saw its revenue decrease by 13% to 381 million euros. Similarly, the combined revenue from Kering's other houses, including Alexander McQueen and Balenciaga, declined by 19% to 805 million euros. Yves Saint Laurent also faced a 16% drop in revenue to 768 million euros.
The new Creative Director of Alexander McQueen, Seán McGirr, was appointed in late 2023, but the change in leadership did not prevent the revenue decline. Gucci, Kering's flagship brand, also suffered a 14% drop in revenue to 2.21 billion euros. Meanwhile, Kering's wholesale and other revenue fell by 20%, and its directly operated retail network revenue dropped by 6% in the same quarter.
For the first nine months of 2023, Kering's revenue stood at 14.6 billion euros, a 3% decrease from the same period in 2022. Armelle Poulou was appointed as the new CFO of Kering in July 2023. Despite the eyewear and corporate division posting a 31% gain to 333 million euros, the overall revenue decline highlights the challenges faced by the luxury goods sector in 2023.
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