Revenue from the directly operated retail network fell by 6 per cent on a comparable basis, a decline attributed to lower traffic and varying performances across regions. Wholesale and other revenues suffered a sharper fall, down by 20 per cent, due to the group's efforts to tighten control over distribution, the company said in a media release.

Gucci, one of Kering's flagship brands, saw its revenue drop to €2.2 billion in Q3 FY23, marking a decline of 14 per cent as reported and 7 per cent on a comparable basis. Sales from directly operated retail fell by 7 per cent during the quarter, although handbags and the Valigeria collection showed resilience. Wholesale revenue for the brand fell by 17 per cent.

Yves Saint Laurent reported a Q3 revenue of €768 million, down 16 per cent as reported and 12 per cent on a comparable basis. Sales in the directly operated store network dropped by 4 per cent, and wholesale revenue plummeted by 38 per cent.

Bottega Veneta's revenue came in at €381 million, down by 13 per cent as reported and 7 per cent on a comparable basis. The directly operated retail network experienced a slight decline, with revenue down by 2 per cent. Wholesale revenue decreased by a substantial 30 per cent.

Revenue from Kering's other brands, including Balenciaga and Alexander McQueen, amounted to €805 million for the quarter, marking a 19 per cent decrease as reported and a 15 per cent decline on a comparable basis. Balenciaga had mixed growth due to a high base of comparison, while Alexander McQueen saw a slowdown. However, Brioni experienced an uptick in sales, driven by its tailoring and leisurewear offerings.

“Beyond the challenging macroeconomic conditions and softening demand across the luxury industry, the change in our revenue performance in the third quarter reflects the impact of our decisions to further elevate our brands and their distribution. The organisation we put in place in July will enable us to strengthen the steering of our houses in the current market environment and to reclaim our positions and influence,” said Francois-Henri Pinault, chairman and chief executive officer.

Fibre2Fashion News Desk (DP)