Fashion conglomerate Kering is seeing signs of a recovery led by online sales after pandemic-induced lockdowns hit the previously runaway demand for the Gucci owner’s clothing.
Luxury brands are trying to make up for lost time after COVID-19 exposed their reliance on in-store business. During the second quarter, e-commerce sales soared 72 percent, Kering said in a statement Tuesday. But this was still only 13 percent of total retail sales at the end of June — showing more work is needed to get shoppers to splurge online for handbags and high fashion.
Overall, revenue fell 44 percent on an organic basis in the three months through June. The decline is greater than the sales fall that rival LVMH reported Monday, though less than the 47 percent drop analysts expected.