Today 4

Saint Laurent tops Lyst as brand heat builds despite Q3 revenue dip

Bottom Line Impact

Elevated brand heat should lift near term revenue velocity and gross margin via mix and pricing, strengthen market positioning versus key rivals, and deepen brand equity if scarcity and newness are balanced effectively.

Executive Summary

Saint Laurent reached number 1 on Lyst for the first time, signaling strong brand heat even as Q3 2025 revenue fell 7 percent to 620m euros. Surging searches in loafers, micro bags, and boots plus runway buzz suggest near term demand upside and a mix shift to higher margin hero SKUs, providing a lever for Kering stabilization.

Actionable Insights

Immediate Actions (Next 30-90 days)
Shift 10 to 15 percent of Holiday and Lunar New Year open to buy into hero loafers, boots, and micro bags with a chase plan for 4 to 6 week replenishment on carryovers
Rationale: Concentrates inventory into proven demand spikes while limiting markdown risk via short cycle reorders
Role affected:Chief Merchandising Officer
Urgency level:immediate
Redirect 20 to 30 percent of digital budget to non branded search and PLA around loafers and micro bags and deploy limited color drops tied to celebrity moments over the next 8 weeks
Rationale: Captures incremental high intent traffic and converts social buzz into DTC revenue at full price
Role affected:CMO
Urgency level:immediate
Short-term Actions (6-12 months)
Protect gross margin by raising prices 2 to 3 percent on top 10 hero SKUs in Q1 while shifting 5 to 10 percent of footwear volume from wholesale to DTC
Rationale: Brand heat improves pricing power and channel mix lifting gross margin by an estimated 80 to 150 bps
Role affected:CFO
Urgency level:short-term
Secure priority capacity with two nearshore leather partners and pre book critical components to cut lead times by 2 to 3 weeks
Rationale: Faster replenishment preserves full price sell through during demand spike and reduces stockouts
Role affected:Chief Supply Chain Officer
Urgency level:short-term

Strategic Analysis

Next 30 to 90 days likely see elevated DTC traffic and full price sell through in footwear and micro leather goods, improving mix and gross margin. Hero SKU momentum enables targeted replenishment in carryover loafers and boots, tighter wholesale allocations, and tactical paid search to capture non branded demand while buzz from the Paris show remains fresh.

Over 6 to 12 months, sustained brand heat can support a tighter pricing corridor and expansion of carryover programs in footwear and small leather goods, lifting margin resilience. However, category concentration risk increases; product novelty cadence and controlled scarcity will be essential to avoid trend fatigue and markdown exposure as competitors chase the same aesthetics.

Dethroning Miu Miu shifts fashion mindshare toward Saint Laurent in core Gen Z and young affluent segments, pressuring Prada Group and Celine in footwear and micro bag share. Within Kering, Saint Laurent strengthens its role as a stabilizer brand, potentially commanding incremental capex and marketing share to offset softness elsewhere.

Suppliers of leather uppers, soles, and metalware face short term capacity tension; carryover SKU replenishment can be accelerated via nearshore workshops. Wholesale partners will request more volume in winning SKUs; tighter DTC first allocation will improve margin but may strain wholesale relationships. Customers benefit from higher availability of hero products but expect newness to sustain interest.

Risks & Opportunities

Primary Risks

  • Demand spike proves transitory leading to overstock and markdowns in Q1
  • Competitor fast response erodes differentiation in loafers and micro bags
  • Macro softness in China and the US dampens conversion despite high search interest

Primary Opportunities

  • Mix shift to footwear and micro leather goods improves gross margin and cash conversion
  • CRM growth via waitlists and back in stock alerts increases repeat purchase probability
  • Pricing power on hero SKUs with low elasticity supports margin expansion

Market Context

Luxury demand is bifurcated with China normalization lagging and the Americas mixed, while Gen Z discovery is increasingly search and social led. Footwear and micro leather goods are outperforming large leather goods across several maisons, with brand heat translating faster into DTC than wholesale. Saint Laurent overtaking Miu Miu signals a shift in fashion mindshare within the accessible high luxury tier, narrowing the gap with LVMH peers and giving Kering a near term growth lever amid broader portfolio volatility.

Back to Saint Laurent All Companies