The revenue of luxury fashion brand Kering during Q3 2020 outperformed analysts’ expectations. According to the research data analyzed and published by Stock Apps, it witnessed a sharp rebound in most of its houses with the exception of Gucci.
The group’s consolidated revenue fell by only 1.2% quarter-over-quarter (QoQ) against analysts’ expectations of around 9.1% during the quarter.
Total revenue for the period was €3.72 billion, a drop of 4.3% year-over-year (YoY) compared to the €3.88 billion in Q3 2019. In comparison to Q2 2020, this marked a significant rebound. In Q2 2020, the brand posted a 43.5% decline YoY and a 43.7% drop QoQ.
North America was its leading region, posting an increase of 44.1% in sales while in the Asia Pacific, there was an 18.5% rise. However, revenue from Western Europe sank by 41% and by 22.8% in Japan.
Gucci, which accounts for the largest share of revenue among the houses, was the worst hit. It posted sales amounting to €2.09 billion, down by 12.1% YoY and 8.9% QoQ. Its retail sales for the period were down 4% QoQ.
Interestingly, Gucci had an increase of 43.7% in North America and 10.6% in Asia Pacific. However, in Western Europe it suffered a 47.3% decline and a drop of 25.9% in Japan.
According to the report, this uneven performance was attributed to a lack of tourists in the latter two regions.
It is noteworthy that Gucci’s online sales soared globally, accounting for 12.6% of the house’s revenue. On the other hand, wholesale revenue sunk by a massive 31.6%. That had to do with the house’s strategy of reducing third-party retailer numbers so as to boost distribution exclusivity.
Bottega Veneta Online Sales Soar by 102% in Q3 2020
As Gucci struggled, other houses under the brand posted remarkable rebounds thanks to online sales.
Bottega Veneta’s revenue reached €332.5 million, up by 17% YoY and 20.7% QoQ. Its online sales grew by an impressive 101.9% alongside an increase of 63.4% in wholesale revenue. Sales from directly operated stores shot up by 12.1% thanks to remarkable performance in APAC and robust growth in North America.
Yves Saint Laurent reported €510.7 million in total revenue, up by 0.8% YoY and 3.9% QoQ. Its retail sales rose by 5.8% QoQ. Compared to Q3 2019, its online sales more than doubled while wholesale revenue rose by 3.4%. Among the reasons for its exceptional performance online was the successful fall 2020 collection. It also reflected the success of the house’s newly launched eCommerce site in China.
Other Houses also performed well in the quarter as revenue shot up by 9.3% YoY and 11.7% QoQ. Retail sales for this segment rose by 10% while wholesale revenue surged by 16.7%. Balenciaga and Alexander McQueen both had double-digit growth in wholesale as well as retail.
For the Corporate and Other segment, there was an increase of 10.1% YoY in revenue and 13.8% QoQ. Kering Eyewear took the lead in this segment.
Gucci Page Views Shoot Up By 52%, Clinches First Spot on Lyst Index
Despite the lag in Gucci’s performance, the house still managed to capture the #1 spot on the Lyst Index hottest brands in Q3 2020. The index takes into account factors like Google search data, mentions on social media, shopper behavior and engagement stats among other things.
Gucci went up two spots from the third position in Q2 2020. One of its highlights for the quarter was the livestream of the Epilogue Collection which took place in July. The virtual event drew a worldwide audience surpassing 35.2 million viewers. It was its most viewed event in history, taking place on Gucci.com, Weibo, YouTube, Gucci app, Twitter and Gucci’s Facebook page.
Another highlight was the Fall/Winter 2020 campaign where models took self-portraits in their personal spaces instead of the runway. The brand also released a genderless section known as Mx on its site.
According to Lyst, Gucci page views increased by 52% YoY during the third quarter. Gucci replaced Nike in the top position as the latter moved down two spots to third position. Off-White was second on the list, retaining its position from Q2 2020.
Other Kering houses on the list included Balenciaga in the fifth position, down from fourth in Q2 2020, Saint Laurent in the eighth spot, down from sixth. Bottega Veneta also appeared, moving up one spot from tenth to ninth.
Alexander McQueen missed a spot in the top 10, but nabbed the 14th spot, moving up from the 15th spot in Q2 2020.
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Nica San Juan
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