Kering Reports 15% Revenue Decline in Q3 2024
Kering's revenue fell 15% as reported and 16% on a comparable basis in the third quarter of 2024, totaling €3.8 billion. The group cited challenging market conditions and significant transformations at Gucci for the downturn.
Kering, the global luxury group, reported a significant revenue decline for the third quarter of 2024. Total revenue reached €3.8 billion, down 15% as reported and 16% on a comparable basis. The company attributed the downturn to unfavorable market conditions across the luxury sector and the ongoing transformation of its flagship brand, Gucci.
Sales through Kering's directly operated retail network decreased by 17% on a comparable basis. The group observed weakened trends in various regions, particularly in Asia-Pacific and Japan, while North America and Western Europe presented a mixed picture across its brands. Wholesale and other revenue segments also saw a decline.
Gucci's revenue was particularly impacted, dropping 25% on a comparable basis. The brand is undergoing a strategic overhaul, including the introduction of new products in its leather goods category. Yves Saint Laurent experienced a 12% comparable decrease in revenue, while Bottega Veneta demonstrated resilience with a 5% comparable increase, reaching €397 million.
The 'Other Houses' segment, which includes brands like Balenciaga and Alexander McQueen, saw a 14% comparable decrease. Kering Eyewear and Corporate revenue grew by 4% comparably. For the first nine months of the year, Kering's total revenue decreased by 12%.
Looking ahead, Kering anticipates its recurring operating income for 2024 to be approximately €2.5 billion, reflecting the prevailing uncertainties in the luxury consumer market and the substantial slowdown experienced in the third quarter. The company remains committed to its strategy for long-term profitable growth and strengthening its brands' desirability and distribution exclusivity.