Balenciaga’s ad scandal stifled the brand’s “hyper growth mode,” notably within the U.S. and U.K., meaning fourth-quarter results for French luxury group Kering “might be as bad because it gets,” in line with an equity research report from HSBC released Thursday.
The bank also cited slowing momentum in China and the U.S. and a “tough basis of comparison” as additional aspects more likely to have dented Kering’s revenues in the course of the crucial holiday season.
It forecasts Q4 revenues, due out on Feb. 15, will slip 3.1 percent in organic terms, reflecting a 12.5 percent dip at Gucci and an 8 percent improvement in “other brands,” which include Balenciaga, Alexander McQueen, Boucheron, Brioni, Pomellato and Queelin.
Still, the report, titled “Leave Your...
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