Kering suffers from Gucci's weakness

Kering suffers from Gucci's weakness

Kering's revenue in 2024 amounted to €17.2 billion, down 12 percent from the previous year (at constant exchange rates). Profit fell by 62 percent to €1.1 billion.

At the brand level, the Group's flagship brand, Gucci, performed well, with sales declining by 21 percent to €7.65 billion compared to 2023. Only the Kering Eyewear (+8% yoy) and Corporate division and the Bottega Veneta brand (+6% yoy) generated sales growth for the company.

"In a difficult year, we accelerated the transformation of several of our Houses and acted decisively to strengthen the long-term health and appeal of our brands. Across the Group, and especially at Gucci, we made important decisions to increase the impact of our communications, sharpen our product strategies, and enhance the quality of our distribution, all while respecting the creative heritage that distinguishes our brands. We secured our organization, made key hires, accelerated implementation, and increased the efficiency of our operations. Our efforts must continue, and we are confident that we have led Kering to a point of stabilization from which we will gradually resume our growth trajectory."

Kering CEO Francois-Henri Pinault spoke of a "difficult year," but at the same time expressed confidence in the restructuring that had been initiated: "We have secured our organization, made important new hires, accelerated implementation, and increased the efficiency of our processes. Our efforts must continue, and we are confident that we have brought Kering to a point of stabilization from which we will gradually resume our growth trajectory." The measures include a hiring freeze and an attempt to optimize supply chains.

However, Kering will have no choice but to hire a new designer. Just last week, the company announced its departure from Gucci's chief designer, Sabato De Sarno, after less than two years. Management has not yet announced when a decision on his successor will be made.