French luxury concern Kering has seen its turnover drop 1.5 % to 2.52 billion euro in the third quarter, due to a decreased demand for luxury and sports clothes.
Flagships performing badly
The most important brand, Gucci, had to deal with a 5.4 % turnover drop in the third quarter. Kering had increased the price of several articles to make the brand more exclusive, with a turnover drop as a result.
Other luxury brands within the Kering portfolio fared better than Gucci: Bottega Veneta grew 7.3 % and Saint Laurent added 7.2 %, while Stella McCartney and Alexander McQueen even managed double-digit growths. The entire Kering luxury division rose 1.5 % to 1.62 billion euro. The rise would have been even higher, 5.6 %, if exchange rates were excluded.
Kering’s sporting division did not perform as well though, dropping 7.6 % in turnover, to 896.2 million euro. Puma, suffering from a decreased European demand in shoes, has taken some blows. Despite its like-for-like turnover decreasing, it is only a 0.8 % drop, whereas analysts had expected -2.3 %.