Luxury fashion conglomerate Kering S.A.(Gucci, Balenciaga, Bottega Veneta, and Saint Laurent) has revealed its financial report for Q1 of 2020. Similar to the Q1 report from rival LVMH, the Covid-19 crisis has shaken revenue streams with a reported Group-wide decline of 15.4 percent.

Gucci, one of Kering's most profitable brands, has seen sales drop by 22 percent worldwide compared to Q1 of 2019. This has been attributed to the closure of physical stores and a suspension on travel which has interrupted the essential profits procured from the lucrative Chinese market. This slump has been partially countered by a boost in online sales, which now counts for 9.5 percent of Gucci’s retail.

Kering's chief financial officer Jean-Marc Duplaix commented that “exclusivity will be ever more paramount than before,” as Gucci plans to make further cutbacks from wholesale.

In contrast, one of Kering's less established brands Bottega Veneta actually saw growth with a 10.3 percent year-over-year increase for Q1, which was put down to a 55 percent year-over-year growth from wholesale.

Bottega Veneta was recently taken over by Daniel Lee (formerly of Phoebe Philo's Celine) who has repositioned the brand as a key player in the new era of luxury fashion with its focus on Italian craftsmanship, biodegradable materials, and low-key branding.

While these statistics look promising, it should be noted that Bottega Veneta's track record for Q1 of 2019 was comparatively low.

Duplaix also commented that dramatic discounts and mark-downs are to be expected to shift the excess inventory for the Spring/Summer 2020 collections as products begin to pile up in warehouses and shuttered stores. He concluded, "we know we will face a very difficult second quarter and a challenging year overall, but I can assure you that we are not only adapting to these unexpected circumstances, we are also using these lessons to improve our efficiency, resilience, and agility to emerge better prepared for the future."

What To Read Next

  • Image on Highsnobiety

    GIMICCI's Pop-Up Is Soho-Certified

  • Image on Highsnobiety

    Nike Looks Set to Snatch the World Cup

    Culture
  • Image on Highsnobiety

    A Moment For Tyler, the Creator's Cozy Puffer 'Fit

    Style
  • Image on Highsnobiety

    Spider-Man: Across the Spider-Verse Glitches the Air Jordan 1

    Sneakers
  • Image on Highsnobiety

    OUR LEGACY's British Escapades Continue With Baracuta

    Style
  • Image on Highsnobiety

    A Scroll Through Rihanna & A$AP Rocky's Best Couple 'Fits

    Style
*If you submitted your e-mail address and placed an order, we may use your e-mail address to inform you regularly about similar products without prior explicit consent. You can object to the use of your e-mail address for this purpose at any time without incurring any costs other than the transmission costs according to the basic tariffs. Each newsletter contains an unsubscribe link. Alternatively, you can object to receiving the newsletter at any time by sending an e-mail to info@highsnobiety.com

Web Accessibility Statement

Titelmedia (Highsnobiety), is committed to facilitating and improving the accessibility and usability of its Website, www.highsnobiety.com. Titelmedia strives to ensure that its Website services and content are accessible to persons with disabilities including users of screen reader technology. To accomplish this, Titelmedia has engaged UsableNet Inc, a leading web accessibility consultant to help test, remediate and maintain our Website in-line with the Web Content Accessibility Guidelines (WCAG), which also bring the Website into conformance with the Americans with Disabilities Act of 1990.

Disclaimer

Please be aware that our efforts to maintain accessibility and usability are ongoing. While we strive to make the Website as accessible as possible some issues can be encountered by different assistive technology as the range of assistive technology is wide and varied.

Contact Us

If, at any time, you have specific questions or concerns about the accessibility of any particular webpage on this Website, please contact us at accessibility@highsnobiety.com, +49 (0)30 235 908 500. If you do encounter an accessibility issue, please be sure to specify the web page and nature of the issue in your email and/or phone call, and we will make all reasonable efforts to make that page or the information contained therein accessible for you.