Published
February 11, 2025
French luxury giant Kering reported Tuesday a 12% drop in fourth quarter sales, but its important Gucci label has gone bad for that time, but its very important markets and the US There was a slight improvement in the
Last week, the conglomerate that made Gucci designer Sabato de Sarno famous, said its annual revenues for the past three months are 43.9 billion euros.
Gucci is extremely important as it not only accounts for almost half of the group sales, but also accounts for about two-thirds of its recurring operating profit. And that fourth quarter sales fell 24%, worse than 19% deficit analysts expected.
Kering’s efforts to turn Gucci around with his biggest design approach under Delno over the past two years (not to be precise, he has no doubt fewer ottos than his predecessor Alessandro Michele style) are a luxury There was little coincidence as it coincided with a global recession in demand.
But while global luxury sales are estimated to have fallen 2% last year, something like the double-digit figures offered by Kering suggests a bigger problem.
However, group chief François-Henlipineau remained bright and spoke about stabilization and progress in the future.
“In a difficult year, we have moved resolutely to accelerate the transformation of some homes and to strengthen the health and desirability of our brand over the long term,” he said.
“All the group, and first and foremost, in Gucci, we have created a creative heritage that distinguishes our brands in order to enhance the impact of communication, sharpen our product strategies and improve the quality of our distribution. We have made important decisions to respect. We have secured the organization, made important employment, strengthened implementation, and increased operational efficiency. If our efforts must continue to be maintained And I’m sure we’ve relegated kelling to a point of stabilization.
Numbers
Now let’s take a look at the details. For the full year, Kering’s revenue reached 17.2 billion euros in 2024, with 12% reported, down 12% on a comparable basis.
Sales from directly operated retail networks, including e-commerce, fell 13%, affected by low store traffic.
Wholesale home revenues fell 22% on a comparable basis “as they continued to increase distribution exclusivity.” At the group level, wholesale and other revenues fell 9% on a comparable basis.
In the fourth quarter, revenues fell 12%. Sales from directly operated retail networks fell 13% on a comparable basis. Trends have been gradually improved in all regions except Japan. Wholesale and other revenues fell 10% overall on a comparable basis, while wholesale revenues fell 25% by the home.
Repeated operating profit fell 46% annually to 2.6 billion euros, with operating profit margins in 2024 at 14.9% in 2024, but in 2023 it was 24.3%.
label
Gucci’s revenues for 2024 fell 23% to 7.7 billion euros, down 21% on a comparable basis. Sales from directly operated retail networks accounted for 91% of the total, down 21%, and wholesale revenue fell 28% (both on a comparable basis).
As we said, revenue for the fourth quarter fell 24%, comparable to sales from directly operating retail networks, but “it’s been slightly improving in North America and the Asia-Pacific region.”
“The performance of the new leather product line and the iconic Gucci line are extremely encouraging,” he said. However, wholesale revenues fell 53% in the fourth quarter, “partially reflecting increased selectivity for distribution partners.”
GUCCI’s recurring operating profit annually is 1.6 billion euros with an operating profit margin of 21%, and “when sales fall, operating leverage is negative, but mitigated by key efforts to streamline the cost base. Ta”.
Yves Saint Laurent was better, but still in negative terms. Revenue for 2024 fell 9% to 2.9 billion euros, both on the same level as reported. Sales from directly operated retail networks fell by 7%, while wholesale revenue fell by 25%.
Sales fell 8% in the fourth quarter, and sales from directly operated retail networks fell 7%, but “recorded significant improvements in North America and the Asia-Pacific region.” A reinterpretation of the new leather product and Yves Saint Laurent’s “The Iconic Handbag Was Very Popular.” Wholesale revenue fell 35% in the fourth quarter, “attributing in part to efforts to streamline its distribution channels.”
Yves Saint Laurent achieved a recurring operating profit of 593 million euros in 2024, with its recurring operating margin of 20.6%, “reflecting the House’s investment in collections, stores and customer events.”
Bottega Veneta was far better than both of these brands as revenues rose by 4% and 6% on a comparable basis. Sales from directly operated retail networks were comparable to 10%, while wholesale revenue fell 15% “due to a highly selective approach to the House partners.”
Sales in the fourth quarter rose 12%, comparable to a 17% increase in directly operated retail networks. Trends in the Asia-Pacific region have improved. The House of Representatives’ leather products offer highlights the immeasurable desirability of the Bottega Veneta brand and remains extremely successful. ” Wholesale revenue fell 10%.
Recurring operating profit was 255 million euros in 2024, resulting in a repeat operating margin of 14.9%.
Revenue from other homes fell equally at 3.2 billion euros, reported 8%. On a comparable basis, sales from directly operated retail networks fell by 4%, while wholesale revenue fell by 17%.
Q4 sales fell 4%. Sales from directly operated retail networks fell 7%, while wholesale revenue rose 9%.
“Balenciaga leather products continued to be well received, and sales at Alexander McQueen were struggling with an ongoing transition. Brioni achieved double-digit growth. Jewelry House continues to make progress, particularly at Boucheron. He performed healthy.
The recurring operating losses for other homes were €9 million in 2024 “due to negative operating leverage in couture and leather goods homes.”
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