French luxury-goods maker Kering SA reported first-quarter revenue that trailed analysts’ estimates as slowing tourism flows weighed on demand in Europe. Sales climbed 2.7 percent to 2.72 billion euros ($3.07 billion), Paris-based Kering said in a statement after European markets closed Thursday. Analysts predicted 2.78 billion euros, according to estimates compiled by Bloomberg. Growth was 4 percent on a basis that excludes currency shifts, acquisitions and disposals, compared with the 5.6 percent gain anticipated by analysts.
Gucci Chief Executive Officer Marco Bizzarri and creative director Alessandro Michele got Kering’s largest brand growing again by the end of their first year in charge. However, the Gucci brand posted a lower-than-expected rise in first-quarter sales on Thursday. Gucci posted 3.1 percent growth in comparable sales, below analysts’ expectations of 5 to 6 percent and slowing from 4.8 percent growth in the last quarter of 2015.
“We are confident that we can extend our growth trajectory over the full year,” Kering CEO Francois-Henri Pinault said in the statement. Gucci’s new collections “continue to draw an enthusiastic response.”
The biggest disappointment was at handbag maker Bottega Veneta, which reported another quarter of declining sales. Revenue fell 8.3 percent, more than twice the decline anticipated by analysts. The brand is suffering from overexposure to Hong Kong and high price gaps between Europe and Asia, along with the slowdown in tourism.
Yves Saint Laurent, which replaced its creative director Hedi Slimane this month with long-rumored replacement Anthony Vaccarello, was again the best performer, posting a 27 percent increase in sales that beat analysts’ expectations.