Luxury goods firm Kering reported better-than-expected fourth-quarter sales, but its flagship brand Gucci’s performance was a concern. The company posted a 12% decline in fourth-quarter revenues to 4.39 billion euros ($4.52 billion), narrowly beating forecasts. However, sales at Gucci plunged 24% annually over the three-month period to 1.92 billion euros.
Kering’s operating income for the year was 2.55 billion euros, in line with revised expectations but significantly lower than the previous year’s result. The company pointed to a slight improvement in Asia Pacific and North America sales across its brands, including Gucci, Yves Saint Laurent, and Bottega Veneta.
Investors are keeping an eye on Kering as they look for signs of revival in the luxury sector, which has been impacted by consumer spending downturns, particularly in China. The company’s shares rose 6% before paring gains to trade up 0.5% following the announcement.
Kering’s Gucci label has been struggling, with a significant decline in sales and revenue. The brand is expected to announce a new design chief soon, with investors hoping for a turnaround. However, analysts remain cautious, noting that legacy issues persist.
“We’re looking forward to seeing how this new creative appointment will impact the brand,” said Luca Solca, senior analyst at Bernstein. “The decline in absolute sales is striking, and it’s going to be a tough hill to climb to return to previous highs.”
Source: https://www.cnbc.com/2025/02/11/kering-slightly-beats-fourth-quarter-forecasts-but-sales-at-embattled-gucci-brand-plunge-24percent.html