Gucci owner Kering sees Q2 revenue fall 43.7%

French luxury goods group Kering said on Tuesday its consolidated revenue in the second quarter fell 43.7% to €2.17 billion on a comparable basis as the coronavirus crisis wreaked havoc on its business.

However, the group hailed a “sharp acceleration” of online sales, up 47.2% in the first six months of the year and up 72.4% in the second quarter.

Kering said that for the first half of 2020, consolidated revenue fell 30.1% to €5.37 billion on a comparable basis.

First-half revenue fell 30.2% at its Gucci house and slumped 33.8% at Yves Saint Laurent.

Kering’s other brands include Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin and Girard-Perregaux.

Kering said that after an excellent start to the year, the first half results were “heavily impacted by store closings and a halt to tourism.”

Kering CEO François-Henri Pinault said: “It is fair to say that the first half of 2020 has been the toughest period we have faced — we stand in solidarity with all who are suffering through this situation and acknowledge the remarkable contribution of all our associates.

“Our results today underscore the extent of the disruption exacted by the pandemic on our operations.

“Even more importantly, the resilience of our performances validates our model and supports our confidence that we will come out of this crisis even stronger.

“We entered 2020 in a particularly solid position – our global scale, the desirability and agility of our brands, and our values of sustainability and responsibility, all are key assets in weathering current conditions.

“Our strategic vision is only reinforced by the crisis and, with the benefit of our sound financials, innovativeness and digital expertise, we are pursuing its implementation with consistency and determination.”