Kering Group Revenue Falls 12% in Q4, CEO Sees ‘Stabilization’

Joelle Diderich

11 February 2025 at 1:48 am·3-min read

PARIS – Kering posted better-than-expected sales in the fourth quarter despite the continued freefall of its star brand Gucci, and chief executive officer François-Henri Pinault believes the French luxury group has now reached a point of “stabilization” after a year of heavy losses.

The owner of brands including Saint Laurent, Balenciaga and Bottega Veneta said revenues in the three months to Dec. 31 fell 12 percent at reported exchange rates to 4.39 billion euros, also representing a decline of 12 percent in comparable terms.

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The figures beat a consensus of analyst estimates, which had called for a 15 percent drop in reported sales to 4.22 billion euros, capping a year of profit warnings that saw the share price slump by more than 40 percent.

Gucci, however, disappointed with an organic revenue drop of 24 percent, worse than the 23 percent decline forecast by analysts.

The brand is in for an extended period of turmoil following the exit of creative director Sabato de Sarno last week after less than two years in the job, and with no replacement named.

For the full year, Kering said recurring operating profit was down 46 percent to 2.55 billion euros, marginally above the consensus estimate for a 47 percent drop. Gucci accounted for 63 percent of the group’s operating profit in 2024.

The recurring operating margin fell to 14.9 percent in 2023 from 24.3 percent the previous year, while net profit fell 62 percent to 1.13 billion euros..

The results marked an improvement from the third quarter, when group revenue fell 15 percent at reported exchange rates and 16 percent on an underlying basis.

“In a difficult year, we accelerated the transformation of several of our houses and moved determinedly to strengthen the health and desirability of our brands for the long term,” Pinault said in a statement.

“Our efforts must remain sustained and we are confident that we have driven Kering to a point of stabilization, from which we will gradually resume our growth trajectory,” he added.

Most of Kering’s luxury divisions saw organic sales weaken in the fourth quarter.

Saint Laurent was down 8 percent, and the “other houses” group, which includes Balenciaga and Alexander McQueen, reported a 4 percent decline.

Bottega Veneta was a bright spot, with a 12 percent rise, but the brand is also set for a shift following the departure of creative director Matthieu Blazy. His successor, Louise Trotter, is due to present her first collection during Milan Fashion Week for spring 2026.

The Kering eyewear and corporate division also bucked the trend with a 10 percent increase in comparable sales.

All eyes will now be on the new strategy for Gucci. Stefano Cantino took over as the brand’s CEO on Jan. 1 after joining in May last year as deputy CEO.

“What will be critical now is clear communication from the new management team at Gucci,” said Jelena Sokolova, senior equity analyst at Morningstar.

“Insight into their turnaround strategy—whether through brand marketing, a renewed creative vision, or specific investments—would go a long way in restoring investor confidence,” she added.

Kering has consistently lagged industry peers.

By comparison, organic sales at LVMH Moët Hennessy Louis Vuitton’s key fashion and leather goods division fell 1 percent year-over-year in the fourth quarter, beating consensus estimates for a 3 percent decline.

Meanwhile, Compagnie Financière Richemont reported a surprise 10 percent revenue uptick during the same period. Hermès International is due to report fourth-quarter results on Friday.

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