In their recent financial unveiling, the luxury conglomerate Kering has announced a 15.4 per cent decrease in revenue for Q1 of 2020 amounting to €3.2 billion from €3.7 billion from Q1 last year.
Kering’s star brand Gucci saw 22.4 per cent decrease in revenue from €2.3 billion in Q1 of 2019 to a mere €1.8 billion in Q1 of 2020. Kering has blamed the COVID-19 pandemic which has resulted in store closures in almost all countries across the globe.
Kering had established a good holding in the rising Chinese market in the past few years with more than half of the company’s revenue contributed by Greater China. This time around the contribution remains similar with China and Western Europe contributing the most to the Group’s revenue.
The Group’s other notable brands including Alexander McQueen, Balenciaga and Yves Saint Laurent also saw a slump in sales.
Bottega Veneta, surprisingly, saw growth in sales of 10.3 per cent making it the only brand in Kering’s portfolio to be successful during the pandemic, bringing in around €273 million this quarter from €248 million generated during the same period last year. This is partly due to its recent reinvention of brand aesthetics as well as its immense popularity in Asia-Pacific region.
Kering has addressed that gradual stability in the Asian market will bring back revenue due to its resilient supply chain combined with local warehouses that are functional even during the outbreak. The Group has taken several measures to combat the pandemic including donations to health authorities of France and China.