Luxury group Kering has reported a 24% drop in Gucci sales for the fourth quarter, despite its efforts to stabilize the brand after a leadership change. The news follows the departure of head designer Sabato de Sarno last week.
Kering CEO Francois-Henri Pinault said the company has reached a “point of stabilization” and expects growth to resume gradually. However, he cautioned that sales will pick up slowly in 2025, citing cost control measures.
Sales at Kering’s smaller labels, including Bottega Veneta, performed better than expected. The group plans to close around 50 stores this year, mainly outlets.
Pinault also rejected the idea that de Sarno was not the right hire for Gucci, saying he helped shift the brand’s focus back to classic elegance. A new designer will be announced promptly.
Gucci’s fourth-quarter slump underscores its ongoing struggle to win new business following an aesthetic overhaul. Analysts expect a rebound next year with the recruitment of a new designer.
Kering’s full-year recurring income from group operations came in at 2.6 billion euros, slightly above guidance. The company’s price-to-earnings ratio is 19, behind rivals like LVMH and Moncler.
Despite the challenges, Kering executives remain optimistic about Gucci’s future, with Pinault expressing confidence that the brand will return to growth.
Source: https://www.reuters.com/business/retail-consumer/gucci-sales-slump-continues-kering-seeks-new-designer-2025-02-11