Coronavirus | Kering's Gucci sales miss analyst expectations

BAISS Reuters - Gucci's new star fashion brand Kering had profited from the decline in the third quarter to 5.8%, missing analyst expectations, as the pace of recovery from coronavirus pandemic slowed sharply after a bumper second quarter, particularly in Asia.

The overall sales in the French luxury group rose on a comparable basis, which strips out the effect of acquisitions and currency fluctuations, a touch above an analyst consensus forecast for an 11% increase.

The group flagged a strong performance in the United States and improving sales in western Europe but said a resurgence of COVID - 19 cases in late July and August had weighed on revenues in the key Asia-Pacific region.

Investors are likely to focus on the performance of Gucci, which accounts for more than half of annual sales, and has been losing steam compared to some rivals after years of stellar growth.

Analysts had expected revenues at Gucci to increase by 9% in the three months to end-September after an 86% increase in the previous quarter. By comparison, LVMH's fashion and leather goods division, home to Louis Vuitton and Dior, posted a 24% increase in third quarter sales.

The finance chief of Kering, Jean-Marc Duplaix, said reporters that the group anticipated Gucci's growth to accelerate in the fourth quarter after its new Aria collection hit stores in late September.

He said: We expect a very intensive end of the year, adding the group was looking to support the brand with investments in events, communication and stores.