Kering reported second-quarter sales down 11 percent, dragged down primarily by flagging sales at Italian mega-brand Gucci.
Gucci’s sales fell 20 percent in reported terms, and 18 percent on a currency-adjusted basis as plans to relaunch the label under a new executive team and designer continued to falter.
One year into the tenures of Gucci chief executive Jean-François Palus and creative director Sabato de Sarno, a sleeker and more heritage-driven vision for the brand has yet to reignite consumer demand in an increasingly challenged market for luxury goods, as shoppers rein in spending on high-end brands after a multi-year surge.
Saint Laurent, once the most stable growth engine in Kering’s portfolio, also reported falling revenues, down 7 percent on a comparable basis, while sales in the group’s Other Houses unit comprising Balenciaga and Alexander McQueen fell by 6 percent. Bottega Veneta reported flat revenues.
Stay tuned to BoF for updates on this developing story.
