The luxury conglomerate Kering, home to notable brands such as Saint Laurent, Bottega Veneta, Balenciaga, and Alexander McQueen, reported its first-quarter results on Tuesday. The group’s revenue declined by 11% to reach €4.5 billion EUR due to challenging market conditions. In light of the revenue downturn, Kering anticipates a decline of 40 to 45 percent in first-half 2024 recurring operating income compared to the first half of 2023. Gucci, a key brand for Kering, experienced an 18% drop in organic revenues, influenced by economic headwinds in Asia-Pacific and leadership changes. Saint Laurent and other brands within the ‘other houses’ category also saw revenue declines, while Bottega Veneta managed a 2% increase. ‘Kering’s performance worsened considerably in the first quarter,’ said the group’s chairman and CEO François-Henri Pinault. ‘While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our houses, starting with Gucci, exacerbated downward pressures on our topline.’
Kering Predicts Steep Decline in Operating Profits and Gucci Revenue Drop
