Luxury French fashion group Kering said that second-quarter comparable sales had plunged by 43.7%, as the impact of the coronavirus pandemic led to store closures and reduced tourist numbers.
The Gucci parent company’s revenue was better than analysts expected, with those at UBS citing an estimate of a 46% fall.
Kering also reported a 29.6% year on year drop in revenue to £4.9 billion (€5.3 billion) in the first half of 2020.
The company, which also owns Bottega Veneta and Yves Saint Laurent, said it witnessed a sharp acceleration of online sales, up 47.2% in the first six months of the year and up 72.4% in the second quarter, compared to 2019.
The sharp rise in online sales can be attributed to a larger online market presence early in 2020, and through the reduction of in store experiences and retail environments during lockdowns.
Bottega Veneta reported an 8.4% fall in revenue year-on-year to £546 million, whilst Yves Saint Laurent’s revenue dropped 30% to £615.5 million.
Gucci also saw a drop of 33.5% compared to the same period in 2019, reporting a revenue of £2.75 billion.
Kering’s overall online sales accounted for 18% of revenue in the second quarter, up from under 10% at the start of the year.
François-Henri Pinault, Kering Chairman and Chief Executive Officer, said: “It is fair to say that the first half of 2020 has been the toughest period we have faced – we stand in solidarity with all who are suffering through this situation and acknowledge the remarkable contribution of all our associates.
“Our results today underscore the extent of the disruption exacted by the pandemic on our operations. Even more importantly, the resilience of our performances validates our model and supports our confidence that we will come out of this crisis even stronger. We entered 2020 in a particularly solid position – our global scale, the desirability and agility of our brands, and our values of sustainability and responsibility, all are key assets in weathering current conditions.
“Our strategic vision is only reinforced by the crisis and, with the benefit of our sound financials, innovativeness and digital expertise, we are pursuing its implementation with consistency and determination.”