Kering in difficulty: Gucci loses momentum
Luxury goods group Kering saw its sales fall by -12% in 2024, largely due to Gucci’s declining performance. A turbulent period marked by strategic changes and financial adjustments.
Gucci down, Bottega Veneta up
The year 2024 has not been kind to Kering, owner of Gucci, Yves Saint Laurent and Bottega Veneta. With sales of 17.2 billion euros, the group suffered a double-digit decline, accentuated by a fourth quarter down -12%.
The main culprit behind this poor performance is Gucci, whose sales fell by -21% to 7.7 billion euros. The Italian brand, which still accounts for 44% of Kering’s sales, has struggled to regain its momentum since Alessandro Michele ‘s departure in 2022. The recent announcement of the departure of Sabato de Sarno, creative director for less than two years, illustrates the difficulties of repositioning the House.
At the same time, Yves Saint Laurent saw its sales fall by -9% to 2.9 billion euros. The only exception to this gloomy picture is Bottega Veneta, which posted growth of +6% to 1.7 billion euros. Boosted by a +12% acceleration in the last quarter, the brand is still in a transitional phase following the departure of Matthieu Blazy, who left for Chanel, to be replaced by Louise Trotter.
A transformation strategy to turn the Group around
Faced with these results, François-Henri Pinault, CEO of Kering, said that 2024 had been a year of reorganization and brand consolidation. The Group has undertaken an overhaul of its product strategy and communications, while optimizing the quality of its distribution.
At the same time, Kering strengthened its financial flexibility by selling 60% of its shares in three Paris properties (Place Vendôme and Avenue Montaigne), raising 837 million euros. A move designed to ensure stability in turbulent times, when the luxury goods market is slowing down, particularly in China.
The year 2025 will therefore be decisive for Kering, which must find the right levers to relaunch Gucci and capitalize on Bottega Veneta‘s performance.
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