The luxury fashion group Kering, second only to LVMH in the world, recently announced a 12% decrease in sales to 17.19 billion in 2024 with a net profit decline of 62% to 1.13 billion. This significant drop in financial performance has been largely attributed to the struggles faced by its flagship brand, Gucci.
Gucci in Crisis: Sales Decline by 24%
One of the most alarming statistics from Kering's 2024 financial report was the 24% decline in sales for Gucci, the iconic Italian luxury fashion house known for its high-end designs and glamorous appeal. This sharp decrease in sales underscores the challenges that Gucci has been facing in recent years, as it struggles to maintain its market position and appeal to consumers.
Kering's 2024 Sales Performance
In addition to Gucci's disappointing sales figures, Kering as a whole experienced a decline in sales in 2024. The group's overall revenue decreased by 12%, reflecting the broader challenges faced by the luxury fashion industry in a rapidly changing market landscape. Despite this decrease in sales, Kering remains a major player in the luxury goods sector, with a diverse portfolio of brands that cater to different consumer segments.
Kering's 2024 Financial Reports: A Closer Look
The 2024 financial reports released by Kering paint a picture of a challenging year for the luxury fashion group. In addition to the decline in sales, Kering also reported a significant drop in net profit, with a 62% decrease compared to the previous year. This decline in profitability highlights the impact of the challenging market conditions on Kering's bottom line.
Gucci: A Case Study in Declining Sales
Gucci's performance in 2024 serves as a case study in declining sales for luxury fashion brands. The brand, once known for its high-flying success and iconic designs, has seen a significant drop in sales over the past year. With a 23% decrease in sales in 2024, Gucci is facing intense competition in the luxury fashion market and struggling to maintain its relevance among consumers.
Gucci's Freefall: Pinault's Focus on Bottega
The freefall in Gucci's sales in 2024 has raised concerns within Kering, prompting the group to explore new strategies to revive the brand's performance. As Gucci struggles to regain its footing in the luxury fashion market, Kering's CEO François-Henri Pinault has shifted his focus to Bottega Veneta, another brand under the Kering umbrella. Pinault's emphasis on Bottega Veneta reflects a strategic decision to diversify Kering's portfolio and reduce its reliance on Gucci's performance.
Kering's Outlook for the Future
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