Luxury group Kering has confirmed first-quarter revenues of €4.5 billion, down by 11% year on year. Preliminary statements the group made in March prepared the market for a double-digit decrease. Report by Leatherbiz.

Chief executive, François-Henri Pinault (pictured), said the group had been prepared for “a challenging start to the year”, but added that the situation had “worsened considerably” in the course of the first quarter.

He pointed to “sluggish market conditions”, notably in China and the “strategic repositioning” of parts of its business, starting with its biggest brand, Gucci, as factors that had “exacerbated downward pressures”.

Mr Pinault concluded: “All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth.”

Gucci’s revenues for the quarter fell by 21% to reach €2.1 billion and were particularly impacted by a sharp decline in Asia.

At Yves Saint Laurent, the decline was 8%, with revenues for the quarter reaching €740 million, with Asia, again, as the worst-performing market.

Revenues at Bottega Veneta were steadier at €388 million, down by 2% year on year. This brand, too, experienced a fall in sales in Asia, but reported strong growth in North America, Europe and the Middle East.