Gucci’s sales drop 5% in third quarter as weak Chinese demand dampens turnaround hopes
PARIS, Oct 22 (Reuters) Kering on Thursday said sales at its flagship label Gucci fell by 6% in the third quarter, in line with market expectations, as low store traffic in China weighed on the Italian brand s performance. Sales at Gucci, which accounts for roughly half of group profits, were down to €1.29 billion ($1.44 billion) in the quarter, Kering said, while total group revenues fell by 1% when adjusted for currency swings. Asked by journalists on a call if returning to overall growth was still the aim for Kering this year, finance chief Armelle Poulou declined to comment, pointing to the publication of full-year results. Store footfall remains the main problem at Gucci, whose sales have been declining for more than three straight years. Revenues from the brand s own store network were down 9%, Kering said, while wholesale and licensing revenues were up. Lower-than-expected quarterly sales at peers LVMH and Hermes, and signs of cooling demand in the US have added