FRANCE: Gucci, Puma weigh on Kering Q3 sales
Revenue reached EUR2.5bn (US$3.45bn) during the three months to 30 September, compared to EUR2.6bn in the same period of last year. On a comparable basis, revenue rose 3.4%.
The group's luxury division, which includes the Gucci and Yves Saint Laurent brands, saw revenue climb 1.5% to EUR1.6bn and 5.6% on a comparable basis, with fashion and leather goods sales rising 6%.
Gucci, however, posted a 5.4% sales decline in reported terms and 0.6% on a comparable basis. The brand's revenue in Western Europe was hit its performance in Italy, its main market in the region.
Revenue at the Kering's sport and lifestyle segment, meanwhile, fell 7.6% to EUR896m, with sales at Puma dropping 7.6% in reported terms and 0.8% on a comparable basis. Puma's apparel and accessories sales grew, while its footwear division continued to be affected by challenging trading conditions.
However, chairman and CEO François-Henri Pinault, said: "Kering posted another quarter of growth, propelled by the luxury division's strong performance, notably in our own store network.
"With very healthy gross margins in our luxury brands and continued tight control of our operating expenses, we remain confident in our performances for the year as a whole," he noted.
The results come after Kering refused to be drawn on reports earlier this week that it is looking to invest at least EUR300m (US$410.2m) into its La Redoute mail order business to try to find a buyer.
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