In Q3 2023, Kering is down, while Hermès is more resilient

The sector, which is used to recording double-digit quarter-on-quarter growth for most of the major groups, is now being impacted by a geopolitical and economic context that is more unstable than ever. Hermès is the only group to show a certain resilience and to reassure investors with an increase in its financial results. Sales for Q3 2023 were €3.365 billion, up 7.3% at current exchange rates (15.6% at constant exchange rates) on the same period last year. These results were greeted by a slight rise in the Hermès share price, which gained 1% on the stock market on the day of the announcement.

In fact, the Hermès group outperformed analysts' forecasts. FactSet and Bloomberg were expecting lower figures: €3.313 billion for FactSet and €3.337 billion for Bloomberg.

The group's sales at the end of September 2023 were €10 billion, up 16.9% at current exchange rates.

Axel Dumas, CEO of Hermès, said: "In an uncertain global environment, we are stepping up our investments and strengthening our teams to support growth. This coveted growth has, however, been slowed by Asia. With the post-pandemic "sales rebound" effect having faded, results are less impressive: Asia-Pacific (excluding Japan) recorded third-quarter sales up 0.1% on last year at current exchange rates. However, the Group plans to continue opening one or two shops a year in China. 

By contrast, Q3 figures were mitigated for luxury group Kering. Here too, international geopolitical dynamics make the exercise a perilous one. Global instability combined with inflation, which is stagnating in several markets including the United States, have led to a fall in sales. Group sales in Q3 2023 came to €4.5 billion, down 13% at current exchange rates and 9% at constant exchange rates. Since the beginning of the year, Kering has recorded sales of €14.6 billion, down 2% on 2022.

Gucci, the group's flagship brand, is struggling to recover, with sales down 14% (at current exchange rates) in Q3. It is not yet clear whether the shift towards quiet luxury proposed by Gucci's new artistic director, Sabato di Sarno, will meet with unanimous approval and enable the company to increase its sales. The other brands are doing no better for the time being: Saint Laurent posted sales down 16% (at current exchange rates) in the third quarter, while Bottega Veneta saw sales fall by 13% at current exchange rates.

Only the Eyewear segment performed well in the third quarter of 2023, with sales of €331 million, up 34% at current exchange rates.