After last week’s mixed bag of Q3 earnings from LVMH and Brunello Cucinelli, this week we turn attention to what will probably be another set of mixed results from Kering and Hermès.
Kering is set to release its Q3 2024 earnings report on October 22 after market close in Paris. Analysts have been cautious about Kering’s outlook, expecting the company’s key brand, Gucci, to show signs of continued weakness due to lagging sales in recent quarters, particularly in China, though there is some hope that they have reached a trough. In the U.S., Kering’s performance in Q1 and Q2 2024 was mixed, with ongoing challenges at Gucci, although other brands like Saint Laurent and Bottega Veneta showed some resilience in earlier periods.
Hermès is scheduled to release its Q3 2024 earnings on October 24. Analysts anticipate that Hermès will continue its robust momentum from earlier this year, with strong demand for its luxury goods in Asia, especially in China. In Q1 and Q2 of 2024, Hermès posted impressive growth, driven by sustained demand across all regions and categories, and its high-end craftsmanship and strong content strategy remain a major competitive advantage.