Kering, a leader in luxury fashion, faces a challenging market, leading to significant sales declines.
- The company’s revenue fell 11% in both the second quarter and first half of 2024, totalling €9bn (£7.57bn).
- Gucci, one of Kering’s premier brands, experienced an 18% decline in revenue for the first half of the year.
- Saint Laurent also saw a drop in sales, while Bottega Veneta showed mixed results with retail growth but falling wholesale revenue.
- Chairman François-Henri Pinault remains optimistic, stressing investment in growth despite market pressures.
In the first half of 2024, Kering’s overall revenue declined by 11%, amounting to €9bn (£7.57bn). Of particular note is the performance in the second quarter, where revenue stood at €4.5bn (£3.78bn), marking a similar 11% decrease. These figures highlight the ongoing challenges faced by the luxury group in the current market.
A key contributor to the decline is Gucci, Kering’s flagship brand, which saw an 18% drop in revenue over the first half of the year. The brand’s sales fell by 19% in the second quarter, with a notable 20% reduction within its directly operated retail outlets. Such figures underscore difficulties in maintaining consumer interest amidst shifting market dynamics.
Other brands under the Kering umbrella also faced challenges. Saint Laurent experienced a 9% decline in sales during the first half of the year. In contrast, Bottega Veneta’s performance was mixed; its directly-operated retail network experienced an 8% sales increase, yet its wholesale revenue fell by 19%, suggesting a complex market interaction.
Regional performance aligned with previous patterns, notably within the Asia-Pacific sector, witnessing significant downturns. This trend was compounded by reduced store traffic across Kering’s networks, further exacerbating the decline in sales figures.
Nevertheless, Kering’s leadership, particularly François-Henri Pinault, maintains an optimistic outlook. Pinault emphasises ongoing investments aimed at enriching brand offerings and enhancing communication impact. He expresses confidence in creating long-term value, despite acknowledging how the present conditions may delay execution strategies.
Despite current market challenges, Kering remains committed to strategic investments for long-term growth.
