Kering forecasts its operating profits to fall by 40-45% in the first half of this year, while revenues sink at Gucci in the first quarter, according to WWD.
The luxury conglomerate, home to additional brands including Saint Laurent, Bottega Veneta, Balenciaga and Alexander McQueen, among others, reported its first-quarter results on Tuesday, revealing that group revenues declined by 11% to reach €4.5 billion EUR.
“Taking into account the deterioration of its revenue trends, the group now anticipates a decline of 40 to 45 percent in first-half 2024 recurring operating income compared to the first half of 2023,” the company stated.
Gucci's organic revenues fell by 18%, following a warning from Kering that the brand would see a plunge while its key markets, particularly the Asia-Pacific region, face economic headwinds and while creative director Sabato De Sarno and CEO Jean-François Palus settle into their new roles. Sales at Saint Laurent were down by 6%, as were the figures in the "other houses" category, which comprises Balenciaga, Alexander McQueen and Boucheron. Bottega Veneta, however, saw a 2% increase in organic revenues.
“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."
See Kering's full Q1 2024 financial report here.
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