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Kering’s revenues were down 11% to €4.5bn (£3.8bn) for the first quarter of 2024 as Gucci, Yves Saint Laurent and Bottega Veneta failed to perform positively.
The group’s revenue from the directly operated retail network fell 11% on a comparable basis, as a result of lower store traffic.
During the period Gucci reported a 21% dip in revenues to €2.1bn (£1.8bn). Revenue from the retail network fell by 19% and was particularly impacted by a sharp decline in Asia-Pacific. Wholesale revenue fell 7% on a comparable basis.
Yves Saint Laurent’s revenue was down 8% to €740m (£636m), although revenue from the retail network proved “resilient” thanks to growth in Japan, a sequential improvement in North America, and relatively stable revenue in Western Europe. Wholesale revenue was down 25%.
Bottega Veneta’s revenue dipped 2% to €388m (£333m) during the period. However, there was a 9% increase in revenue from the House’s directly operated retail network thanks to double-digit growth in North America, Western Europe and the Middle East. Wholesale revenue was also down 25%.
Revenue from the group’s other Houses totaled €824m (£708m), down 7%. In the operated retail network, revenue was up 3%. Balenciaga performed well in Western Europe and Japan, Brioni reported double-digit growth and Kering’s Jewellery Houses were driven by “sharp” double-digit growth at Boucheron. However, wholesale revenue was down 25%.
The group now anticipates a decline of 40% to 45% in operating income during the first half of 2024 compared to 2023.
François-Henri Pinault, chairman and chief executive officer of Kering, said: “Kering’s performance worsened considerably in the first quarter. 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.
“In view of this revenue decline, together with our firm determination to continue investing selectively in the long-term appeal and distinctiveness of our brands, we now expect to deliver sharply lower operating profit in the first half of the year. All of us are working tirelessly to see Kering through the current challenges and rebuild a solid platform for enduring growth.”
