Kering: Gucci’s Q3 revenue down 4 per cent to 1.29bn, down 6 per cent on a like-for-like basis

-9% retail revenue, +35% wholesale revenue

(Il Sole 24 Ore Radiocor) - In the third quarter, Gucci reported turnover of 1,291 million euros, down 4 per cent on a nominal basis and 6 per cent on a like-for-like basis. Gucci’s performance was affected by a more challenging basis for comparison and a less pronounced novelty effect compared with the second quarter. Although footfall remained the main constraint, the conversion rate, average price and average receipt value showed further improvements, supported by the gradual launch of new collections, as explained in a statement. The fashion house has continued its transformation of its product range, further refining its product and pricing architecture, raising quality standards and reducing time to market. Handbags were at the heart of this effort, thanks to a broader range, whilst ready-to-wear and footwear remain areas of particular focus. Sales through the network of directly managed shops fell by 9 per cent on a like-for-like basis. North America proved to be the brand’s most resilient market, despite a more challenging year-on-year comparison; conversely, lower footfall weighed on results in the Asia-Pacific region – particularly in mainland China – and in Japan. In the third quarter, revenue from the wholesale channel and other activities grew by 35 per cent on a like-for-like basis. The wholesale channel, which totalled €120 million (equivalent to 9% of quarterly sales), recorded a 45% increase on a like-for-like basis, benefiting from a favourable basis of comparison and the fulfilment of orders relating to the new collections.

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