Revenue during the first quarter of the Kering Group, which was € 4.5 billion, decreased by 10 per cent on a comparable basis and by 11 per cent as reported.
Reduced shop traffic caused revenue from the directly operated retail network to drop 11 per cent on a comparable basis, according to a statement from the firm. On a similar basis, revenue in the wholesale and other categories decreased by 7 per cent as well.
“Kering’s performance worsened considerably in the first quarter. While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline,” said François-Henri Pinault, Kering’s chairman and chief executive officer.
The company added that the impact of Kering’s investment strategy will be felt in 2024 in the context of the sector’s continued normalisation of growth. The group’s recurring operating income is expected to post a decline in comparison to the level reported in 2023, especially in the first half of the year.
The group now expects a 40–45 per cent decrease in first-half recurring operating income compared to the first half of 2023, due to the deterioration of its sales trends.
Gucci’s revenue for the first quarter of 2024 was € 2.1 billion, which was lower than expected by 21 per cent and below than comparable revenue by 18 per cent. On a similar basis, wholesale revenue for the brand decreased by 7 per cent.
Revenue for Yves Saint Laurent came to € 740 million, a decrease of 6 per cent on a comparable basis and 8 per cent less than what was reported.
The business also stated that although royalties and other revenue increased by 27 per cent on a comparable basis, Yves Saint Laurent’s wholesale revenue decreased by 25 per cent. Revenue for Bottega Veneta came to € 388 million, down 2 per cent from the reported amount but up 2 per cent on a comparable basis.
The group’s other properties brought in € 824 million in revenue in the first quarter, a decrease of 6 per cent on a comparable basis and 7 per cent as reported. Revenue in the directly run retail network increased by 3 per cent on a comparable basis. Balenciaga recorded double-digit growth in North America, continued to be resilient in Asia-Pacific, and saw trends improve in Western Europe and Japan. The company reported double-digit growth for Brioni. Comparably speaking, wholesale revenue decreased by 25 per cent.
