© Reuters. FILE PHOTO: The logo of French luxury group Kering is seen at Kering headquarters in Paris, France, February 13, 2023. REUTERS/Sarah Meyssonnier/File Photo
By Mimosa Spencer
PARIS (Reuters) -Kering posted a 4% decline in fourth quarter sales, hit by slowing demand for fashion as it seeks to turn around its top brand Gucci, but flagged an improving performance in the United States and Europe.
Sales at the French group, which also owns fashion labels Bottega Veneta and Balenciaga and jeweller Boucheron, came to 4.97 billion euros ($5.36 billion) in the final three months of the year, broadly in line with expectations for 4.94 billion euros, according to consensus estimates cited by RBC.
“The end of the year confirmed the trends of the rest of the year with an improvement for us in the United States and slightly in Europe,” Kering (EPA:) chief financial officer Armelle Poulou told reporters.
Poulou highlighted the performance of the group’s Italian luxury label Bottega Veneta, which grew sales by 20 percent in the United States during the quarter.
Kering’s efforts to revive sales at its star label Gucci, which has lagged rivals over the past two years, have been complicated by slowing demand for fashion and accessories, especially in the United States and Europe.
In addition to tougher economic conditions, the group’s business has been hit by its moves to take distribution in-house by reducing sales through wholesale channels in a bid to cut promotions and move its labels upmarket.
($1 = 0.9276 euros)
