PARIS – Kering posted better-than-expected gross sales within the fourth quarter regardless of the continued freefall of its star model Gucci, and chief government officer François-Henri Pinault believes the French luxurious group has now reached a degree of “stabilization” after a yr of heavy losses.
The proprietor of manufacturers together with Saint Laurent, Balenciaga and Bottega Veneta stated revenues within the three months to Dec. 31 fell 12 p.c at reported change charges to 4.39 billion euros, additionally representing a decline of 12 p.c in comparable phrases.
The figures beat a consensus of analyst estimates, which had known as for a 15 p.c drop in reported gross sales to 4.22 billion euros, capping a yr of revenue warnings that noticed the share worth droop by greater than 40 p.c.
Gucci, nonetheless, disenchanted with an natural income drop of 24 p.c, worse than the 23 p.c decline forecast by analysts.
The model is in for an prolonged interval of turmoil following the exit of artistic director Sabato de Sarno final week after lower than two years within the job, and with no substitute named.
For the total yr, Kering stated recurring working revenue was down 46 p.c to 2.55 billion euros, marginally above the consensus estimate for a 47 p.c drop. Gucci accounted for 63 p.c of the group’s working revenue in 2024.
The recurring working margin fell to 14.9 p.c in 2023 from 24.3 p.c the earlier yr, whereas internet revenue fell 62 p.c to 1.13 billion euros..
The outcomes marked an enchancment from the third quarter, when group income fell 15 p.c at reported change charges and 16 p.c on an underlying foundation.
“In a troublesome yr, we accelerated the transformation of a number of of our homes and moved determinedly to strengthen the well being and desirability of our manufacturers for the long run,” Pinault stated in an announcement.
“Our efforts should stay sustained and we’re assured that now we have pushed Kering to some extent of stabilization, from which we’ll steadily resume our progress trajectory,” he added.
Most of Kering’s luxurious divisions noticed natural gross sales weaken within the fourth quarter.
Saint Laurent was down 8 p.c, and the “different homes” group, which incorporates Balenciaga and Alexander McQueen, reported a 4 p.c decline.
Bottega Veneta was a brilliant spot, with a 12 p.c rise, however the model can also be set for a shift following the departure of artistic director Matthieu Blazy. His successor, Louise Trotter, is as a consequence of current her first assortment throughout Milan Trend Week for spring 2026.
The Kering eyewear and company division additionally bucked the pattern with a ten p.c enhance in comparable gross sales.
All eyes will now be on the brand new technique for Gucci. Stefano Cantino took over because the model’s CEO on Jan. 1 after becoming a member of in Might final yr as deputy CEO.
“What can be vital now could be clear communication from the brand new administration group at Gucci,” stated Jelena Sokolova, senior fairness analyst at Morningstar.
“Perception into their turnaround technique—whether or not by way of model advertising, a renewed artistic imaginative and prescient, or particular investments—would go a great distance in restoring investor confidence,” she added.
Kering has constantly lagged business friends.
By comparability, natural gross sales at LVMH Moët Hennessy Louis Vuitton’s key style and leather-based items division fell 1 p.c year-over-year within the fourth quarter, beating consensus estimates for a 3 p.c decline.
In the meantime, Compagnie Financière Richemont reported a shock 10 p.c income uptick throughout the identical interval. Hermès Worldwide is because of report fourth-quarter outcomes on Friday.