Kering hit by weak sales at Gucci and adverts crisis at Balenciaga 

A fall in sales at Gucci and consumer outrage over Balenciaga’s portrayal of children in its adverts led to a slowdown in revenue at the brands’ owner.

French luxury conglomerate Kering said its biggest brand, Gucci, booked a 14 per cent drop in sales in the three months to the end of December in part due to pandemic restrictions in China.

Kering reported a 4 per cent sales drop in its ‘other brands’ segment, which includes Balenciaga. 

Overall fourth-quarter revenue fell 7 per cent to £4.7billion – shy of analysts’ expectations.

‘I’m not going to pretend the results are up to our ambitions or that I am satisfied,’ said chairman François-Henri Pinault. 

His comments come as Balenciaga had a ‘difficult’ December after a backlash over a Christmas campaign featuring children with bondage-strapped teddy bears.

It also published a photo of Nicole Kidman in a robe, with documents from a case about child sex abuse in the background. 

‘We made a clear error of judgment with no intention at all to shock, provoke or hurt anyone. 

‘I take full responsibility for this episode. And I present our apologies,’ Pinault said.

Kering is stuck in its biggest creative crisis in nearly a decade, the last time Gucci and Balenciaga sales stalled.

It enjoyed stellar growth until recently, boosted by the designs of Alessandro Michele at Gucci and Demna at Balenciaga. Michele left last year.