Kering's total sales from the directly operated retail network decreased 17 percent year-on-year on a comparable basis, negatively affected by lower store traffic. Wholesale and other revenues decreased 12 percent year-on-year on a comparable basis. In the first nine months of the year, the Group generated revenues of €12.8 billion, down 12 percent on a reported and comparable basis.
Kering Group's third-quarter 2024 revenue declined 15 percent year-on-year to €3.8 billion (~$4.09 billion), with Gucci down 26 percent and Yves Saint Laurent down 13 percent. Bottega Veneta's revenue grew 4 percent. From other Chambers, revenue fell 15 percent year-on-year. CEO François-Henri Pinault cited difficult market conditions and a focus on long-term sustainable growth amid current setbacks.
Quarterly performance by bRand
In the third quarter, Gucci's revenue amounted to €1.6 billion (~$1.7 billion), down 26 percent as reported and down 25 percent year-on-year on a comparable basis. Sales of the directly operated retail network decreased 25 percent year-on-year on a comparable basis. The brand was affected by market conditions, especially in Asia-Pacific. The brand's wholesale revenue decreased 38 percent year-over-year on a comparable basis, reflecting Gucci's strategic rationalization of this distribution channel, along with difficult market conditions, according to a news release from Kering.
Yves Saint Laurent's third-quarter revenue was €670 million (~$722 million), down 13 percent year-over-year and down 12 percent on a comparable basis. Sales of the directly operated retail network decreased 12 percent year-on-year on a comparable basis. The brand's wholesale revenue fell 20 percent year-on-year on a comparable basis.
Bottega Veneta's revenue amounted to €397 million (~$428 million) in the third quarter, up 4 percent year-over-year as reported and up 5 percent on a comparable basis. Revenue growth in the Chamber's directly operated retail network was particularly strong, up 9 percent year-on-year on a like-for-like basis, driven by double-digit growth in North America and Western Europe. The brand's wholesale revenue decreased 10 percent year-on-year on a comparable basis.
Revenue from other Kering Group houses amounted to €686 million (~$740 million) in the third quarter, down 15 percent year-on-year as reported and down 14 percent on a comparable basis. Sales of the directly operated retail network decreased by 10 percent on a comparable basis under complex market conditions.
Balenciaga's leather goods lines recorded very good results. Alexander McQueen has been progressively rolling out its collections in stores since July and its second show under the House's new identity has had a very enthusiastic reception. Brioni continued its growth. The wholesale revenues of the other Chambers decreased by 28 percent year-on-year on a comparable basis, the press release added.
François-Henri Pinault, President and Chief Executive Officer (CEO) said: “With discipline and determination, we are executing a far-reaching transformation of the Group, and of Gucci in particular, at a time when the entire luxury sector faces unfavorable market conditions. This seriously impacts our performance in the short term. Our absolute priority is to create the conditions for a return to strong and sustainable growth, while further tightening control over our costs and the selectivity of our investments. “We have the right strategy, organization and talent to achieve these goals.”
Taking into account the significant uncertainties that are likely to affect demand among luxury consumers in the coming months and following the larger-than-expected slowdown in the third quarter of the year, Kering's recurring operating income in 2024 could total approximately €2.5 billion (~2.7 billion). . The Group prioritizes expenses and initiatives that support the long-term development and growth of its Houses, and works determinedly to optimize its cost base, the efficiency of its organization and the return on its investments.
Fiber2Fashion News Desk (SG)
