Kering, the French luxury group that includes Gucci, Yves Saint Laurent, Balenciaga, and Bottega Veneta, reported a worse-than-expected 9% drop in Q3 sales at constant currencies, missing the consensus forecast of a 6% decline. Gucci, responsible for over half of Kering’s annual sales, saw a 7% sales decrease.
Kering sales dropped by 9%
Luxury YouTube expert, Super Dacob made a video regarding the entire situation. He states that price increases are definitely not helping with the situation. The comments on the video states that these brands wanted exclusivity, now they got what they wanted as nobody is buying their products anymore.
Others state that supporting smaller designer brands like Polene are miles better than supporting those conventional brands. However, Kering is still regarded as a conglomerate that does take care of their brands’ quality. It is rare to see a defective Gucci handbag in comparison to brands like Chanel.