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China Lockdowns Crimp Kering Revenues in Q1

Kering said all its fashion and jewelry houses posted double-digit revenue gains in the first quarter of 2022, while acknowledging that COVID-19 lockdowns in China since March had an impact.

The French parent of GucciBottega VenetaSaint Laurent and Pomellato said revenues rose 21.4% on a comparable basis to 4.96 billion euros.

François-Henri Pinault, chairman and chief executive officer, trumpeted “spectacular performances” at Saint Laurent and its so-called “other houses,” particularly Balenciaga and Kering Eyewear.

However, he noted that “Gucci’s strong showing in North America and Europe was overshadowed by its exposure to China, where we are boosting its organization to fully capture the vitality of the market.”

As reported, Gucci recruited Laurent Cathala, a Tiffany & Co. executive, to become president of its Greater China fashion business, a new position. He is expected to be in place by the end of June, based in Shanghai.

Revenues at Gucci rose 13.4% on a comparable basis to 2.59 billion euros, with the company flagging that strong sales momentum in North America and Western Europe was offset by a “mixed” performance in Asia Pacific.

Gucci’s sales have been yo-yoing lately, rising 3.8% in the third quarter of 2021, and then vaulting by 32% in the fourth quarter.

By contrast, Saint Laurent reported a 37.2% jump in first-quarter revenues on a comparable basis to 739 million euros, while Bottega Veneta sales gained 16.3% to 396 million euros.

Revenues at “other houses” — which include Alexander McQueen and Brioni — improved 35.1% to 973.4 million euros.

Pinault gave no specific guidance for coming quarters, noting that “while we remain attentive to economic and geopolitical conditions, we invest in all our brands, whose attractivity will continue to fuel our growth and profitability.”

Kering is the last of France’s big luxury players to report first-quarter results.

LVMH Moët Hennessy Louis Vuitton reported a 29% gain in revenues to 18 billion euros, with its linchpin fashion and leather goods division posting organic sales growth of 30% during the period. Hermès International recorded a 27.1% rise to 2.76 billion euros, as reported.

This story was reported by WWD and originally appeared on WWD.com.

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