Source: The Business of Fashion
Summary
Kering, the luxury goods conglomerate, reported a slowdown in growth due to disruptions in its department store partnerships in France and the U.S. Despite this, the company saw growth in most regions. The network disruption affected sales, causing a decline in performance.
Our Reading
The trend returns with a new name.
Kering’s slowdown is a familiar story. Department store woes have been a recurring theme in luxury retail. The company’s reliance on these partnerships has exposed it to disruption. Luxury brands are rethinking their wholesale strategies. Kering’s growth in other regions is a reminder that the luxury market is increasingly fragmented.
Author: Evan Null
