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Gucci’s Revenue Falls to €1,6 Billion in Q3 2024; Mixed Results Across Brands as Kering Eyes Long-term Growth and Sustainability
Financials
03 November, 2024
Table of contents
Kering's third-quarter financial results for 2024, published on 23 October 2024, reveal a total group revenue of €3,8 billion, marking a 15% year-over-year decline on a reported basis and 16% on a comparable basis. This downturn underscores the ongoing impact of economic and geopolitical uncertainties on the luxury sector. The group’s directly operated retail network saw a 17% decline in sales, particularly in the Asia-Pacific region and Japan. Additionally, wholesale and other revenue channels contracted by 12%, reflecting the global pressures on consumer spending in the luxury market.
| Brand/Division | Q3 2024 Revenue (€ millions) | Q3 2023 Revenue (€ millions) | % Growth Decline |
|---|---|---|---|
| Gucci | 1.641 | 2.217 | -26% |
| Yves Saint Laurent | 670 | 768 | -13% |
| Bottega Veneta | 397 | 381 | +4% |
| Other Houses | 686 | 805 | -15% |
| Kering Eyewear & Corp | 440 | 333 | +32% |
| Total Kering Group | 3.786 | 4.464 | -15% |
Kering’s Q3 revenue performance across geographies highlighted regional disparities, with some regions more affected than others by market dynamics. A summary by geographic region provides a closer look at these variations.
| Region | Revenue (€ millions) | % Change (Year-over-Year) |
|---|---|---|
| Asia-Pacific | Significant decline | |
| Japan | Significant decline | |
| North America | Contrasted | |
| Western Europe | Contrasted |
Kering’s ESG initiatives for 2024 continued to advance its long-standing commitment to sustainable practices, particularly in materials sourcing, resource efficiency, and carbon footprint reduction. The group’s ESG report for 2023 highlighted specific environmental achievements:
| ESG Metric | 2023 Achievement |
|---|---|
| Carbon Footprint Reduction | Reduced across all brands |
| Sustainable Material Usage | 60% of materials are eco-friendly |
| Animal Welfare | High ethical sourcing standards |
| Circularity Initiatives | Recycling and reuse partnerships |
In the third quarter, Gucci’s revenue of €1,6 billion was a 26% decline year-over-year, with retail sales down by 25%. The brand has implemented strategic product line expansions, particularly in its Leather Goods segment, to revitalise demand. Yves Saint Laurent’s revenue also fell to €670 million, a 13% decrease year-over-year, while Bottega Veneta achieved resilience, with a 4% increase in revenue. Other Houses, including brands like Balenciaga and Alexander McQueen, generated €686 million in revenue, experiencing a 15% decline. The Eyewear and Corporate segment demonstrated robust growth, largely attributed to the addition of Creed under Kering Beauté.
Kering remains committed to its long-term goals, including enhancing the desirability and exclusivity of its brands and achieving sustained growth amidst challenging market conditions. The group forecasts a recurring operating income of approximately €2,5 billion for 2024, a result aligned with prudent cost management and strategic prioritisation of investments. Further analysis could explore how Kering’s brand-specific transformations and continued sustainability investments will bolster resilience and align with evolving consumer expectations in luxury markets.
Read the full Kering Group report Here.
Cover Image Courtesy: Gucci Equilibrium Website