Gucci sales slump drags down Kering FY performance

Kering, which owns brands such Gucci, Yves Saint Laurent and Bottega Veneta, has reported a 29% drop in EBITDA to €4.6bn (£3.8bn) and a 12% decrease in revenues to €17.2bn (£14.3bn) in the year to 31 December 2024. Recurring operating income totalled €2.6bn (£2.17bn) in 2024, down 46% from the 2023 level, and recurring operating margin was 14.9% in 2024 compared with 24.3% in 2023. The group’s performance was affected by sales at Gucci which plummeted 23% to €7.65bn (£6.37bn). Meanwhile, its operating income was down 51% to €1.6bn (£1.34bn). Sales from the directly operated retail network, accounting for 91% of the total, were down 21% on a comparable basis. Wholesale revenue was also down 28% on a comparable basis. Yves Saint Laurent also saw a 9% drop in sales to €2.9bn (£2.4bn) in 2024, and a 39% decrease in recurring operating income to €593m (£494m). Additionally, Bottega Veneta performed well as its sales increased by 6% €1.7bn (£1.42bn), but recurring operating income plummeted to €255m (£212m), down 18%. Looking ahead, to achieve its long-term vision, Kering is investing in the development of its Houses, to “strengthen their desirability and the exclusivity of their distribution, strike a perfect balance between creative innovation and heritage, and achieve the highest standards of sustainability and experience for their customers”. In an economic and geopolitical environment that remains uncertain, Kering continues to deploy its strategy with the aim of achieving a “profitable long-term growth trajectory”. The group added it is also stepping up the initiatives needed to support the development and growth of its Houses to increase its efficiency. François-Henri Pinault, chairman and chief executive officer, said: “In a difficult year, we accelerated the transformation of several of our Houses and moved determinedly to strengthen the health and desirability of our brands for the long term. Across the group, and at Gucci first and foremost, we made critical decisions to raise the impact of our communications, sharpen our product strategies, and heighten the quality of our distribution, all in the respect of the creative heritage that distinguishes our brands. “We secured our organisation, made key hirings, sped up execution, and intensified the efficiency of our operations. Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilization, from which we will gradually resume our growth trajectory.”