Gucci had a challenging third quarter partly due to its APAC slump, per Kering's latest earnings call. The Italian luxury brand's sales dropped 25% this quarter compared to the previous year. It's been trouble in paradise for luxury brands in China, which was once their reliable cash cow.
Gucci just had a bad quarter, and Kering is attributing the lackluster performance to a slump in its Asia Pacific market. The Italian luxury brand saw a 25% drop in quarterly revenue as compared to a year before. Gucci's parent company, French luxury group Kering, reported $1.
77 billion in sales in the third quarter of 2024, compared to $2.39 billion in the same period last year. "Sales from the directly operated retail network were down 25% on a comparable basis, the House being particularly impacted by market conditions, especially in Asia-Pacific," Kering's press release on Wednesday said of Gucci.
The Asia Pacific region, which accounted for about a third of Gucci's global revenue this quarter, was the major dampener on sales. According to a third-quarter revenue infographic by Kering, sales in the APAC region were down 38% compared to the previous year. "With discipline and determination, we are executing a far-reaching transformation of the Group, and at Gucci in particular, at a time when the whole luxury sector faces unfavorable market conditions," the group's CEO, François-Henri Pinault, said in the release.
"This severely impacts our performances in the short term," he added. Ker.
