By Scott Kanowsky
Investing.com -- French luxury company Kering (LON:0IIH) SA (EPA:PRTP) reported a jump in total sales during the third quarter thanks to American shoppers in Europe taking advantage of a strong U.S. dollar to spend big on premium products.
Group-wide revenue during the period grew by 14% like-for-like to €5.14B, boosted in large part by surging demand in Western Europe.
Sales soared by 74% in the region. Kering linked this uptick to a "hefty contribution" from U.S. tourists who, buoyed by a recent spike in the greenback, purchased items from Kering's key Gucci unit - the Italian fashion house that far outstretches Kering's other divisions in terms of demand.
But the stronger dollar also dampened Gucci's quarterly performance in North America, the world's largest luxury market, while performance in China was mixed. As a result, revenue increased by 9% on a comparable basis to €2.58B.
This growth rate was well below Kering's other divisions, which include iconic brands like Yves Saint Laurent and Bottega Veneta.
In a statement, Kering chairman and chief executive officer François-Henri Pinault described the trading environment as "complex" amid COVID lockdowns in China and soaring inflation, but added that he was "as confident as ever" in the prospects for the Paris-based business.
The results come after Kering luxury peers Hermes International SCA (EPA:HRMS) and Pernod Ricard (EPA:PERP) both posted better-than-expected sales in the July-September quarter. Both companies said they are raising prices as well in response to higher costs and currency fluctuations.