THE WHAT? Kering has reported a 2 percent sales gain in Q1 2023, falling behind rivals LVMH and Hermès.
THE DETAILS Revenues rose 1 per cent to €5.1bn on a comparable YOY basis in the first three months of 2023, lagging that of Hermès’ 23 percent and LVMH’s 18 percent.
Kering own store sales rose 4 percent, while wholesale and other revenue was down 10 percent on a comparable basis.
Geographically, Kering stated that the increase was ‘driven by good momentum in Western Europe and Japan. Revenue was down in North America but resumed growth in Asia-Pacific due to the gradual recovery of the Chinese market.’
THE WHY? The luxury fashion house’s results were let down by its wholesale unit, with Kering continuing to reduce the share of wholesale in its distribution, and North America.
Chief Executive Officer François-Henri Pinault said, “Kering’s performance in the first quarter remained mixed, as we had anticipated. As we work to augment the desirability of our brands and raise their profile in key markets, we are encouraged by the gradual improvement in activity month after month during the period.”