AFP
Oct 24, 2013
Kering confident despite sales taking hit in third quarter
AFP
Oct 24, 2013
French luxury group Kering said Thursday it remained confident about its 2013 performance despite sales declining 1.5 percent in the third quarter, with its top brand Gucci taking a big hit.
Sales of 2.52 billion euros ($3.48 billion) came in just below analyst expectations, with the decline in overall sales due to a 7.6-percent drop in the sports and lifestyle unit that includes the Puma brand.
The luxury division posted overall sales growth of 1.5 percent to 1.6 billion euros, but Gucci sales tumbled 5.4 percent from the same quarter last year to 865 million euros.
Finance director Jean-Marc Duplaix said a drop in Gucci sales in China was due to a temporary fall in demand for luxury goods as well as changes it is implementing to restore control over the brand and increase its exclusivity by limiting distributors and volumes.
Kering, formerly known as PPR, saw its other luxury brands, including Bettega Veneta and Saint Laurent, post growth.
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