(CercleFinance.com) – The Kering group publishes a turnover of 4,504 ME for the 1st quarter of 2024, down 11% in published data (and -10% in comparable data, i.e. at constant scope and exchange rates ) compared to the same period a year earlier.
In detail, and on a comparable basis, Gucci shows a decline of 18%, to 2079 ME, behind YSL which fell 6% to 740 ME. On the other hand, Bottega Veneta increased by 2%, to 388 ME, and Kering Eyewear and Corporate increased by +9%, to 536 ME.
Finally, the activity of Other Houses fell by 6%, to 824 ME.
‘Kering’s performance deteriorated significantly in the first quarter. While we anticipated a difficult start to the year, market conditions, particularly in China, and the strategic repositioning of some of our Houses, starting with Gucci, increased the pressure on our turnover, analyzes François- Henri Pinault, Chairman and CEO.
In this context, Kering confirms its investment strategy for the development of its Houses, ‘so that they constantly strengthen their desirability and the exclusivity of their distribution’.
For 2024, Kering recognizes that this strategy will weigh on the Group’s current operating income: the latter should be lower than the level published in 2023, particularly in the first half.
Given the deterioration in revenue trends, the Group now anticipates a decline in its current operating income for the first half of 2024 of around 40 to 45% compared to the first half of 2023.
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