Gucci, a prominent brand under the Kering umbrella, faced a significant decline in sales during the fourth quarter due to the lingering effects of Covid-19 on luxury shopping and tourism expenditures. While Gucci experienced a more pronounced decrease in sales, other key brands such as Saint Laurent and Bottega Veneta performed strongly within the Kering portfolio.
In total, Kering reported a revenue of €4 billion in Q4, reflecting an 8.2% decrease compared to the previous year. Despite an initial expectation of a 1% sales increase, the final results fell short of projections.
Gucci specifically saw a 10.3% decrease in revenue during Q4, indicating a more substantial decline compared to the overall company performance. However, Kering remains optimistic about Gucci’s growth prospects, particularly as the brand approaches its 100th anniversary this year.
François-Henri Pinault, the Chairman and CEO of Kering, expressed confidence in the company’s resilience and adaptability in a challenging economic environment. He emphasized the strong recovery in revenue during the second half of the year and continued investments in expansion initiatives.
For the full fiscal year, Kering reported consolidated revenue of €13.1 billion, representing a 17.5% decrease on a reported basis. While sales from Kering’s retail network dropped by 15.9% on a comparable basis, there was a notable resurgence in the latter half of the year, particularly in North America and Asia-Pacific regions.
Gucci observed a 21.5% decline in comparable revenue for the year, with Saint Laurent also seeing a 13.8% decrease. In contrast, Bottega Veneta achieved a 4.8% revenue increase, while other brands experienced a 14.6% decline.
Despite the challenges faced, Kering highlighted positive trends such as robust growth in online sales and the revenue surge at Bottega Veneta. Gucci also demonstrated a durable performance in Mainland China and witnessed substantial growth in online sales.
Saint Laurent experienced a 0.5% revenue increase on a comparable basis in Q4, driven by strong sales momentum in Asia-Pacific, North America, and Japan. Bottega Veneta had a standout year, with revenue growth in the second half and a 15.7% increase in revenue during Q4.
Looking forward, Kering remains bullish on its future prospects, with divisions like Balenciaga, Alexander Mcqueen, and others displaying satisfactory performances. The company is confident in its strategic direction and business model, positioning itself to capitalize on the anticipated rebound in the luxury market.
For more information on Kering and its brands, visit their official website here.
To learn more about the luxury market and industry trends, click here.
