Gucci disappoints again. Bottega Veneta surprises. Kering plugs the hemorrhage (but net income plummets 62%). CEO François-Henri Pinault believes the French luxury group has reached a point of “stabilization” after a year of heavy losses. This is thanks to improved sales in China and the US. However, the French group remains behind competitors – such as LVMH and Richemont – who have achieved better results.
Gucci -24%
Gucci posted a 24% decline in revenue on a comparable basis during the fourth quarter 2024. While analysts had forecasted a 19% decline (source: Reuters). “The performance of Gucci’s new leather goods and iconic lines, such as the Jackie bag and its new interpretations, is very encouraging”, reads the company’s note. But these were not the results Kering expected after two years spent seeking a relaunch. The brand is awaiting a new creative director after parting ways with Sabato de Sarno.
Bottega Veneta +12%
In the last quarter of the year, Saint Laurent’s revenue declined by 8%, while the “other brands”, including Balenciaga and Alexander McQueen, experienced a 4% decrease. Bottega Veneta surprised, with a 12% increase in revenue, mainly because, says Kering, “the leather goods offering continues to be very successful”. Bottega Veneta is also preparing for a style change after the departure of creative director Matthieu Blazy, who landed at Chanel. In his place came Louise Trotter.
Point of “stabilization”
Kering, weighed down by Gucci, posted a 12% drop in fourth-quarter revenue to 4.39 billion euros. With a slight improvement in China and the US. The decline is in line with the Visible Alpha consensus cited by UBS. For the full year 2024, Kering’s revenues fell 12% on a comparable basis to 17.2 billion euro. Current operating profit is down 46% year-on-year, while net income plummeted 62% to 1.13 billion. Citing an “uncertain” economic and geopolitical environment, the French group says it has “particular vigilance in terms of financial discipline“. The focus is on cost control, investments, and budget management.
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