Tuesday, October 19, 2021
Solid revenue growth in the third quarter of 2021
Group revenue: €4,187.8 million
up 12.6% as reported and up 12.2% on a comparable basis relative to Q3 2020
up 10.0% on a comparable basis relative to Q3 2019
“On the back of an excellent first half, Kering achieved a very solid third quarter at Group level, up double digits over 2019. Saint Laurent, Bottega Veneta and our Other Houses, as well as Kering Eyewear, all posted outstanding performances. With the launch of its Aria collection, Gucci is set for an intense fourth quarter. In a constantly evolving Luxury market, we are strengthening the positioning and distribution of all our brands, providing them with the resources they need to be ever closer to their customers. Sustainability is central to our strategy, and we achieved major new milestones in recent weeks. More than ever, we are investing to sustain our profitable growth trajectory over the long term and poised to successfully pursue our journey.”
François-Henri Pinault, Chairman and Chief Executive Officer
- Group revenue in the third quarter of 2021 rose 12.2% on a comparable basis year-on-year and 10.0% relative to the same period in 2019. In the first nine months of the year, Group sales were up 36.6% on a comparable basis year-on-year (up 9.0% versus the same period in 2019).
- Revenue from the Luxury Houses’ directly operated stores, including e-commerce, grew by 12.0% on a comparable basis relative to the third quarter of 2020 and 11.0% relative to the third quarter of 2019.
o Business levels were driven by very strong momentum in North America. In Western Europe and Japan, where markets are still being affected by the absence of tourists, sales continued to improve. In Asia-Pacific, after solid growth in the first half of the year, sales rose relative to both 2020 and 2019, but were held back by rising COVID-19 case numbers during the summer.
o Online sales continued to grow at a firm pace, up 24.3% relative to the third quarter of 2020 and 147.9% relative to the same period in 2019.
Gucci: transition between collections
In the third quarter of 2021, Gucci’s revenue totaled €2,181.8 million, an increase of 4.5% as reported and 3.8% on a comparable basis.
Sales generated in directly operated stores grew 6.9% and 1.6% on a comparable basis relative to the third quarters of 2020 and 2019, respectively.
Following the Ouverture collection, the third quarter brought the successful launch of the Diana bag, while the Aria collection gradually arrived in stores from late September.
Good sales momentum continued in North America and Western Europe, particularly with local customers.
On a comparable basis, wholesale revenue fell 19.1% relative to the third quarter of 2020 and 44.5% relative to the third quarter of 2019, reflecting the House’s strategy of making its distribution ever more exclusive.
Yves Saint Laurent: further acceleration
Yves Saint Laurent had an excellent quarter and maintained its strong growth trajectory with sales of €652.9 million, up 27.8% as reported and 28.1% on a comparable basis. Revenue growth relative to 2019 accelerated sequentially.
On a comparable basis, sales in the directly operated store network rose sharply in the third quarter, up 30.9% year on year and up 36.9% relative to the third quarter of 2019, due to success across product categories, all posting double-digit growth.
This outstanding momentum continued in all geographic regions, notably North America and Western Europe.
The House continues to reinforce its appeal in Asia-Pacific.
On a comparable basis, wholesale revenue rose 22.1% compared to the third quarter of 2020.
Bottega Veneta: very healthy growth
Bottega Veneta’s revenue amounted to €363.4 million in the third quarter, up 9.3% as reported and up 8.9% on a comparable basis.
Sales in the directly operated store network rose 6.1% year on year on a comparable basis and were up sharply (+18.4% on a comparable basis) relative to the third quarter of 2019.
The House’s very balanced growth is driven by its success with both existing and new customers.
On a comparable basis, revenue from the highly exclusive wholesale network rose by 18.3% compared to the third quarter of 2020.
Other Houses: excellent performance across the board
Revenue from the Group’s Other Houses totaled €843.7 million in the third quarter, up 26.1% as reported and 26.0% on a comparable basis. Revenue also increased very sharply relative to 2019, due notably to the ongoing expansion of Balenciaga and Alexander McQueen, whose sales continued to grow rapidly across all distribution channels. All Jewelry Houses delivered outstanding performances. Boucheron’s new collections were very well received, resulting in exceptional growth, particularly in China and South Korea. Pomellato’s sales remained very solid and Qeelin achieved particularly impressive growth. The return to growth of the Watchmaking brands was also confirmed.
Corporate and other
Third-quarter revenue in the Corporate and other segment rose 24.1% both as reported and on a comparable basis, as a result of very strong performance by Kering Eyewear in its main markets and across all distribution channels.
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination”.
In 2020, Kering had over 38,000 employees and revenue of €13.1 billion.
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