On Tuesday, Kering said its sales fell 12 per cent to €4.97 billion in the fourth quarter ending 31 December — slightly better than consensus estimates of a 13 per cent decline.
Still, Kering’s fourth-quarter performance lagged behind its biggest rival. LVMH said its sales in the fourth quarter grew 1 per cent on an organic basis to around €23.95 billion, with its fashion and leather goods division declining 1 per cent. Richemont posted sales up 10 per cent year-on-year at constant exchange rates in the quarter.
Sales at Kering’s largest brand, Gucci, were down 24 per cent year-on-year in Q4, worse than consensus of a 22 per cent decline, while Saint Laurent’s sales fell 8 per cent. Bottega Veneta was the bright spot: up 15 per cent, which showed a strong sales beat (consensus was a 5 per cent rise). Sales at the Other Houses division, which includes Balenciaga and Alexander McQueen, were down 4 per cent in the quarter. Kering’s eyewear and corporate sales were up 10 per cent.
Backstage at Balenciaga SS25.
Photo: Acielle/StyleDuMonde
By geography in the fourth quarter, Asia Pacific was down 24 per cent year-on-year in Q4, Japan was down 6 per cent, while sales were down 8 per cent in Western Europe and down 9 per cent in North America.
For the 2024 full year, Kering’s revenue was down 12 per cent to €17.2 billion. Gucci’s sales were €7.7 billion, Saint Laurent €2.9 billion, Bottega Veneta €1.7 billion and Other Houses €3.2 billion. The group’s recurring operating income for 2024 was down 46 per cent to €2.6 billion.
Saint Laurent AW25 menswear.
Photo: Alessandro Lucioni / Gorunway.com
All eyes are now on Gucci, as we wait to find out who the house’s next creative director will be. Last week, Kering announced Sabato De Sarno’s exit from the Italian house. Kering stock rose 5.8 per cent on the day of the announcement after falling at the open, as investors assumed change would be positive for the house.
“A move in the right direction — we expect — could possibly work as a catalyst for both business and stock market improvement. The most credible name reported by media — in our opinion — could be Hedi Slimane,” Bernstein analyst Luca Solca commented.
“Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilisation, from which we will gradually resume our growth trajectory,” François-Henri Pinault, chairman and chief executive officer said in a statement.
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