Low numbers shown by Kering for the quarter. Gucci’s revenue was down 21% in Q1 of 2024. The multinational, on the other hand, decreased revenue by 11% to 4.5 billion euro: data that confirms the profit warning issued on March 19th. China turned its back on Gucci, with a contraction of 28% in the Asia-Pacific region. The French group expects its operating income to lose between 40 and 45% in the first half of 2024.
Kering’s quarter
“Kering’s performance has strongly decreased in the first semester. Even if the forecast was for a difficult year, stagnant marketplace (especially in China), Kering is also dealing with the repositioning of some brands, starting with Gucci: all aspects that added pressure on the topline”, commented the CEO of Kering, François-Henri Pinault.
Gucci down 21%
In Q1 of 2024, Gucci’s revenue amounted to 2.1 billion euro, down 2.1 billion euro at current exchange rates and -18% at constant ones. “The Chinese market is polarized, demand for high-end luxury items remains high, as does the aspirational segment, but with Gucci positioned somewhere in the middle, this polarization doesn’t help”, said to journalists Kering’s CFO, Armelle Poulou (source: Reuters). Poulou added that the situation may change. “The brand is suffering because Chinese consumers are waiting for the new collection to enter stores”.
Bottega Veneta holds
Yves Saint Laurent’s revenue amounted to 740 million euro, down 8% at current rates and -6% on a comparable basis. Meanwhile, Bottega Veneta holds at 388 million, down 2% at current rates and up 2% at constant ones. Revenue from other brands reached 824 million euro, down 7% and 6% with the previous logics.
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