Kering, revenues down 11% to 4.504 billion euros | EUROtoday

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«Kering's efficiency deteriorated considerably within the first quarter. Although we anticipated a troublesome begin to the 12 months, stagnant market circumstances, notably in China, and the strategic repositioning of a few of our homes, beginning with Gucci, have exacerbated downward strain on our revenues.” François-Henri Pinault, president and CEO of the French luxury group, does not mince words and photographs the reality of a first quarter of 2024 which ended with revenues down by 11% (-10% at constant exchange rates) to 4.504 billion euros. «In light of this decline in revenues – continues Pinault -, together with our firm determination to continue to invest selectively in the long-term attractiveness and distinctive character of our brands, we now expect to achieve a significantly declining operating profit in the first half of this year. All of us are working tirelessly to help Kering address current challenges and rebuild a solid platform for lasting growth.”

First quarter down

Kering's income for the primary quarter of 2024 fell 11% as reported and 10% on a comparable foundation to 4.5 billion euros. The income decline features a detrimental 3% forex impact and a 2% constructive scope impact from the Creed consolidation.

Directly operated retail community income fell 11% on a like-for-like foundation, attributable to decrease retailer site visitors. Trends in Western Europe, North America and Japan had been consistent with these of the fourth quarter of 2023, whereas a steeper decline was recorded in Asia-Pacific. Furthermore, Kering factors out that revenues within the wholesale phase decreased by 7% on a comparable foundation, because the group “continues to strengthen the exclusivity of the distribution of its homes”.

Gucci

In the primary quarter of 2024, Gucci's revenues stood at 2.1 billion euros, down 21% (-18% on a comparable foundation). Directly operated retail community income fell 19% on a comparable foundation within the first quarter and was notably impacted by a pointy decline within the Asia-Pacific area. «The new Gucci collections, progressively available in shops ranging from mid-February, have been very nicely obtained, notably within the ready-to-wear and shoe classes». On a comparable foundation, wholesale revenues decreased by 7%.

Yves Saint Laurent

Yves Saint Laurent's revenues within the first quarter of 2024 amounted to 740 million euros, down 8% (-6% on a comparable foundation). Revenues from the immediately operated retail community had been “resilient” (down 4% on a comparable foundation) because of robust development in Japan, sequential enchancment in North America and comparatively steady revenues in Western Europe. In the Asia-Pacific area, exercise ranges had been affected by troublesome market circumstances. On a comparable foundation, wholesale income fell 25%. Royalties and different revenues elevated 27% on a comparable foundation, with dynamic performances within the eyewear, perfume and cosmetics sectors.