PARIS (Reuters) – Sales at Kering’s star Gucci fashion brand fell more than expected in the fourth quarter as the COVID-19 pandemic kept consumers from travelling abroad and shopping.
Gucci drives the bulk of revenues and profits at the French conglomerate, and has been one of the industry’s top performers in recent years.
But it has struggled more than some peers in the COVID-19 crisis, despite a rebound in luxury goods demand in regions like Asia which fuelled resurging sales at rivals such as LVMH’s Louis Vuitton.
Kering, which also owns brands such as Saint Laurent, said revenue for the whole group fell 8.2% to 4 billion euros ($4.83 billion) for the October to December period, down 5% on a comparable basis and missing a UBC consensus forecast for growth of nearly 1%.
