Retail brands drag on revenue at France's Kering
Oct. 24, 2013
PARIS (AP) — French luxury and retail company Kering says sales fell 1.5 percent in the third quarter as its retail brands struggled amid tough economic conditions in Europe.
The company, formerly known as PPR, said Thursday that it brought in 2.5 billion euros ($3.5 billion) in the June-to-September quarter.
Kering has been jettisoning many of its retail brands to focus on luxury, which has withstood the global economic crisis well. Sales in its luxury division were up 1.5 percent and would have been higher if it were not for a slide at Gucci, which relies heavily on the struggling Italian market.
But its sports and lifestyle division, made up largely of the Puma brand, saw revenue drop 7.6 percent. The company said it has installed a new management team at Puma.