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’Tis the season of earnings, and while some luxury brands have had a great quarter, others have struggled, as slowing consumer demand and inflation took a toll. Spoiler alert: Luxury as a whole is experiencing a global slowdown, so bear that in mind.
Here’s a quick look at how a few luxury retailers are doing this quarter:
Kering Group
First up, but a bit down in spirits is Kering, whose Q3 results revealed a 13% dip in revenue. The group that owns Yves Saint Laurent, Gucci, and Balenciaga also reported a 9% fall on an underlying basis to 4.46 billion euros. Among the lowlights behind the brand’s unfavorable results were YSL, which fell 16% on a reported basis; Gucci, which fell 14%; and Bottega Veneta, which was down 13%.
Hermès
Over at Hermès, things were a bit more chipper. Its Q3 sales were up, and it reported better than expected results, thanks to the unflagging appetite of its affluent consumers. Rain or inflation, you always need a Birkin, amirite? Surprisingly, its sales in the Americas were up 20% at a time when many retailers have reported a dip in their US sales. “Despite an uncertain context, our outlook remains unchanged,” Eric du Halgouet, Hermes’s EVP of finance, told Reuters.
Moncler
Moncler, the Italian luxury group best known for its warm puffy jackets, reported total revenue of 669.7 million euros ($707.6 million) in its Q3 results. While that's a 7% increase over last year, it was down relative to the first two quarters of 2023, but higher than analyst expectations.