By Joshua Kirby

 

Kering said Thursday that revenue soared in Europe in the third quarter but was more muted elsewhere, with main brand Gucci's performance in China hampered by pandemic-related restrictions in the key market.

Total revenue rose 14% at constant currency to 5.14 billion euros ($5.02 billion), slightly ahead of analysts' expectations of EUR4.97 billion, according to a poll of estimates compiled by FactSet.

Sales in Western Europe soared 74% in the quarter, as U.S. tourists flocked to capitals over the summer. However, this shift in spending contributed to only very slight growth in North America in the quarter, Kering said.

Asia-Pacific growth was "robust" at 7%, despite the impact of anti-pandemic restrictions in mainland China, Kering said. For Gucci, overall sales growth was 9% to EUR2.58 billion, with a mixed performance in China, the company said.

While there was an improvement in growth trends compared with the second quarter, the sanitary situation in China remains a headwind for the group's brands, finance chief Jean-Marc Duplaix said in a call with journalists. "We still haven't returned to a normal situation," he said.

The group's second-largest brand Yves Saint Laurent meanwhile posted very rapid growth of 30% to EUR916 million, with Western Europe sales more than doubling thanks both to tourists and local customers, Kering said.

 

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

 

(END) Dow Jones Newswires

October 20, 2022 12:01 ET (16:01 GMT)

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