Kering reported second-quarter gross sales down 11 %, dragged down primarily by flagging gross sales at Italian mega-brand Gucci.
Gucci’s gross sales fell 20 % in reported phrases, and 18 % on a currency-adjusted foundation as plans to relaunch the label below a brand new govt crew and designer continued to falter.
One yr into the tenures of Gucci chief govt Jean-François Palus and artistic director Sabato de Sarno, a sleeker and extra heritage-driven imaginative and prescient for the model has but to reignite client demand in an more and more challenged marketplace for luxurious items, as buyers rein in spending on high-end manufacturers after a multi-year surge.
Saint Laurent, as soon as probably the most secure progress engine in Kering’s portfolio, additionally reported falling revenues, down 7 % on a comparable foundation, whereas gross sales within the group’s Different Homes unit comprising Balenciaga and Alexander McQueen fell by 6 %. Bottega Veneta reported flat revenues.
Keep tuned to BoF for updates on this growing story.
