Kering reports 12% revenue decline for 2024
Luxury group Kering announced a 12% decrease in 2024 revenue, reflecting challenging global market conditions and strategic brand transformations across its portfolio.
Kering, the luxury goods conglomerate, reported on February 11, 2025, that its revenue for 2024 fell by 12% both on a reported and comparable basis, reaching €17.2 billion. The group's recurring operating income saw a significant drop of 46% to €2.6 billion, with the operating margin contracting from 24.3% to 14.9%.
The decline was attributed to reduced store traffic in Kering's directly operated retail network and a strategic reduction in wholesale distribution to enhance brand exclusivity. Gucci, the group's flagship brand, experienced a substantial 21% decrease in comparable revenue, totaling €7.7 billion. Yves Saint Laurent's revenue decreased by 9% to €2.9 billion, while Bottega Veneta managed to grow its revenue by 6% to €1.7 billion.
In the fourth quarter of 2024, Kering's revenue declined by 12%, though the company noted sequential improvements in trends across most regions. Retail sales were down 13% on a comparable basis. Gucci's fourth-quarter revenue fell 24%, but new leather goods and iconic handbag lines showed encouraging performance. Yves Saint Laurent and Bottega Veneta reported smaller declines or growth in the fourth quarter, indicating varied regional performances.
Chairman and CEO François-Henri Pinault described 2024 as a difficult year during which Kering accelerated the transformation of several of its houses and made critical decisions to strengthen brand desirability. He expressed confidence that the group has reached a point of stabilization and will gradually resume its growth trajectory.