The Gucci store, served by Kering SA, in the Sanlitun region in Beijing, China, on Saturday, October 12, 2024.
Bloomberg Bloomberg Getty images
French luxury company Dry On Tuesday, it was better than expected sales in the fourth quarter, which, despite this, fell from year to year due to the delayed demand for the main Gucci label.
The high -class fashion group, whose brands also include Bottega Veneta, Balenciaga and Alexander McQueen, recorded a 12% drop in revenues from the fourth quarter to EUR 4.39 billion (USD 4.52 billion), simply a bit overtaking LSEG forecast by $ 4.29 billion euro via LSEG Analysts.
Sales at Gucci, which accounts for almost half of the group's total revenues, dropped 24% per year over three months to EUR 1.92 billion, compared, expanding losses to a once beloved luxury group.
All -year sales also dropped by 12% to EUR 17.19 billion compared to expected EUR 17.09 billion.
The operating income for the year amounted to EUR 2.55 billion, according to the improved group forecast from October, but almost half of 4.75 billion results achieved a year earlier.
“In a difficult year, we accelerated the transformation of several of our homes and decided to decide to strengthen the health and desire of our brands in the long run,” said the president and general director of François-Henri Pinault in a statement.
“Our efforts must remain maintained and we are convinced that we have led the keering to the stabilization point, from which we will gradually resume our growth trajectory.”
The French fashion house indicated a slight improvement in the sales of Asia and Pacific and North America in its brands Gucci, Yves Saint Laurent and Bottega Veneta, but did not provide detailed information about specific markets.
A luxury Gucci boutique in Paris in France, on Tuesday, October 22, 2024.
Bloomberg Getty images
Kering is the latest European luxury group that has reported earnings in recent weeks, because investors have been looking for signs of revival in the sector hindered by slowing down consumer expenditure, especially on the key Chinese market.
Last month, investors were disappointed Only slightly better than expected year -round results from a luxury Bellwether LVMH. The market found out after crossing the entire sector Star results from the owner of Cartier RichemontBut the permanent weakening of LVMH fashion and leather segments as well as wine and ghosts pointed to further discrepancy in the sector.
Kering, which is particularly vulnerable to the Chinese consumer, fights with a particularly sharp crisis because his Gucci star fell out of fashion.
On Thursday, the fashion group announced the departure of the head of Design Gucci Sabato de Sarno, in the first serious change, since Gucci General Stefano Cantino, the General Director of Gucci, joined the brand last year to revive the brand. The minimalist designer de Sarno was in place for less than two years, after replacing Alessandro Michele, whose maximalist designs defined the brand in previous years.
Deputy De Sarno will be announced “in the right time”, said the company in a statement.
Simone Ragazzi, a senior capital analyst at Algebris Investments, said on Monday that Kering would hope to signal a reset for the brand during a new design visit, but he added that investors will probably remain cautious because they remain older problems.
“It is hope that the market puts for quite a long time. This is always a bit of a question mark, “said CNBC in connection with the video conversation.
“The brand has become accustomed to ups and downs in the past, because it is one of the most based on a fashionable luxury group,” he contradicted. “We hope that the new designer can pump the brand.”