Kering Third-Quarter Sales Trail Estimates as Gucci Disappoints

PARIS, France — Kering SA reported third-quarter revenue that trailed estimates as its Gucci luxury-goods brand posted the weakest growth in four years.

Sales from continuing operations fell 1.5 percent to 2.52 billion euros ($3.48 billion), Paris-based Kering said today in a statement after markets closed. Analysts predicted 2.55 billion euros, according to the median of 14 estimates compiled by Bloomberg. Excluding acquisitions and currency fluctuations, revenue rose 3.4 percent, the company said.

Kering follows LVMH Moet Hennessy Louis Vuitton SA in reporting slowing growth at its biggest brand as consumers from Barcelona to Beijing seek more exclusive clothing and accessories. Comparable sales at Gucci advanced 0.6 percent in the third quarter, compared with analyst estimates of 2.1 percent growth. That was the weakest performance since the third quarter of 2009 when sales declined 7 percent.

Gucci’s adoption of a more exclusive strategy “adversely affected third-quarter store traffic,” in the Asia Pacific region, Kering said in the statement.

Louis Vuitton sales grew less than 3 percent between July and September on an organic basis, LVMH said last week.

By: Andrew Roberts; editors: Paul Jarvis, Tim Farrand.